Distressed Properties Slow Southern California's Recovery
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As reported yesterday, San Diego County’s year-over-year price increase in November was the highest in four years, up $20,000, or 6.6 percent, to $325,000. The last time the percentage change was higher was in October 2007, one month before the median reached a record $517,500. It then fell to a low of $280,000 this past February before starting to rise to its present level. San Diego’s median has remained unchanged for four months. DataQuick said sales throughout the region are being propelled by unusual conditions, historically low interest rates, federal tax credits and investor interest, especially in lost-cost homes in foreclosure or distress. Sales of newly built homes and condominium conversions were up 25.5 percent to 2,039 from year-ago levels and were the highest of the year. San Diego’s 374 new-home sales were the highest since January 2008, a reflection of the county’s unique geographical and political makeup, no room to grow, tough environmental and regulatory rules and an economy, while ailing, that can depend on the military to provide a foundation lacking elsewhere, said Louis A. Galuppo, director of residential real estate at the University of San Diego’s Burnham-Moores Center for Real Estate.
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