Does the San Diego housing market mirror what we’re seeing on a national level?
A. Yes and no. New home sales plunged across all regions, but San Diego does have some things going for it. First off, we entered the housing crisis before much of the rest of the country so there’s a good chance we’re ahead of the curve. Also, Adibi said the tax credit probably had less of an impact in California than in other states because our median home prices are much higher. For instance, if you’re buying a home for $190,000 a tax credit of $8,000 can be a big incentive. If you’re buying a home for $550,000, well, not so much. But our high-priced homes come at a cost, too. Adibi said he’s pretty confident that our low-end market has stabilized and that we’ll see no further price drop. But when it comes to homes $600,000 or more, there probably will be some additional pain because it’s harder to qualify for loans and those jumbo loans are much more costly. That means there are a dearth of buyers for those types of properties and it triggers the old supply-and-demand problem. Q. W
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