June 08	June 07	% Change
Median Sales Price	$405,000	$565,000	-28.3%
# Of Sold Listings	1,560	1,525	+2.2%
Interest Rate (30 yr)	6.45%	6.67%	-3.3%
1st Time Buyer Affordability Index	41%	23%	+78%
Avg. Days Market	72	66	+9%

First off, a welcome to some new subscribers this month!

I personally build and write every issue of this real estate newsletter and I hope you find it useful and informative. However, if you would rather not be bothered, please just send me a quick email and I will gladly pull you off the mailing list. You might want to check out this month's giveaway in the San Diego Trivia section before you do so!

(Also, let me know if you have any formatting issues or just click the link on the very top of the this page)

America's Financial System

Let's take a look at some of the recent negative national headlines and then we can focus more on the current situation in San Diego:

• The American Dollar has hit record lows against the Euro.
• Energy prices, including the cost of gasoline, are at record highs.
• The Stock Market has plummeted in recent weeks.
• In March, Bear Stearns (one of the world's largest investment banks) collapsed amid a breakdown in subprime mortgages and was eventually taken over by JPMorgan Chase.
• IndyMac Bank was recently taken over by the Federal Government resulting in another victim of the housing market and "loose lending" in the past few years.
• Currently the FDIC (Federal Deposit Insurance Corporation), which insures bank deposits to certain levels, has 90 banks on their watch list as potentially being at risk of failing.
• Countrywide (one of the largest financier of mortgages in America) was purchased by Bank of America amidst continuing pressure from defaulting home loans they either originated or serviced.
• Fannie Mae and Freddie Mac (who guarantee almost half of all the home loans in America) have been offered Federal assistance if they need it in a bailout program for the troubled companies.

Wow! How can there be a positive side to all that bad news? Well, in the words of famous billionaire investor Warren Buffet, "be fearful when others are greedy and be greedy when others are fearful." I think it is safe to say people are pretty fearful right now. Or maybe banking tycoon Baron Philippe De Rothschild's quote is more appropriate, when he proclaimed to buy "when there is blood in the streets."

The bottom line is although America's financial picture is nothing short of gloomy, these recent events have brought changes in the San Diego marketplace that have created some great buying opportunities. Real estate is not a short run investment. True wealth in real estate is acquired over a long term timeline- just ask your parents or their parents and so on. Markets will go up and they will come back down- and this cycle will continue over and over again. Any investment expert will tell you that timing the market is next to impossible. However, due to the combination of current housing prices in San Diego and interest rates on home loans- an opportunity has been created for renters and investors.

I would like to conclude with some positive notes on San Diego and focus on the Top 10 characteristics of this area that are not going to change:

1. Home to some of the best weather in all of America
   
2. Three Major College Universities
   
3. Retirement Destination
   
4. Vacation Destination
5. Located next to a huge international border
6. Diverse Economy- not tied to just one sector or industry
7. Numerous Coastal Communities
   
8. Large Military Presence
   
9. Great proximity to Mexico, Los Angeles and Las Vegas
10. Good Overall School Districts

Life is good here in San Diego- we live in a great place!