November, 2006 Homedex Report(market info)

This useful information has been provided by the North San Diego County Association of Realtors. Our association has no position or stake in the results of a monthly study called HOMEDEX. The sole purpose in producing the index is to provide its' members and our clients with consistent informaiton of home prices in the region. The Homedex provides our seller clients information that can help them establish a viable price on the property they wish to sell and our buyer clients identify areas where homes are more affordably priced.

For a complete copy of this report, including charts and graphs and information on specific areas of North County, please contact us and we will send it to you.

1. The median price for all North County home sales, attached and detached, declined from $545,500 in October to $540,000 in November, 2006.
a. Detached homes in North County declined 1.21 percent from $609,375 to $602,000 from
October to November, 2006.
i. Detached home sales outside North County rose 1.82 percent in the same time period.
b. Attached home sales in North County fell 11.39 percent from $395,000 in October to
$350,000 in November, 2006

2. The present market conditions are highly ideal for buyers. Interest rates remain comparable to 40-year lows and the inventories are becoming higher than has been the case in the recent
past.
a. Conditions may not last with early indications that the housing market outlook is
improving. Prices are expected to rise modestly next year.

3. Even in a cooler market, 2006 will still be the third-best year on record, according to the
National Association or Realtors.

4. The current condition of the housing market needs to be kept in perspective. House values
rose 88 percent on a national average, higher in California, over the past decade.
a. The number of U.S. households is expected to increase 15 percent over the next decade
creating a continued high demand for housing.
b. Even with the lower appreciation levels in home prices, there will be a strong investment incentive
to buy homes in North San Diego County.
i. Especially considering that a home is not like other investment assets. A home provides a basic
human need; it has the ability of use by its owner.

5. There's no housing bubble to burst since.....
a. People continue to come to San Diego and want to enjoy the benefits of owning their own home.
b. Mortgage rates still remain below those of the past several decades.
i. And there are numerous mortgage programs and creative financing techniques buyers are using
to qualify to purchase homes.