In North County San Diego, the median price for all home sales – attached and detached – declined 1.1% in March from February, decreasing $5,000 from $450,000 to $445,000. Detached homes in North County decreased 4.85%, from February to March, from $515,500 to $490,000. Detached home prices OUTSIDE North County decreased 0.36%, from February to March, from $411,500 to $410,000. March median single-family detached homes in North San Diego County fell 23.44%, from $640,000 in March 2007. The median price OUTSIDE North County for single -family homes fell 22.64% from the $530,000 a year ago last month.  The countywide median price of homes sold remained unchanged from $440,000 in March 2008 but was down 24.79% from the March 2007 number.

Attached home prices in North County increased during March by 9.65%, from $310,000 a month earlier to $339,000. Non-North County attached home prices fell 8.62% in March; from $290,000 to $265,000. Non-North County attached homes decreased 25.35% from $355,000 a year ago last month. Median days-on-market for single -family detached homes in North County declined from 64 to 58 days between February and March. The number of North County single-family homes sold increased 9.26% last month, from 443 to 484. There was a ear-to-year decline of 37.06% from the769 homes sold in March 2007.

The residential real estate market has swung from the seller’s market of three years ago when home prices were increasing as much as 20 to 30 percent per year to the buyer’s market today where prices have decreased and there’s an abundant inventory of homes from which to choose. That’s good news for those looking to buy a home. Interest rates continue to at record lows, at least for the short-term future. An abundant selection of homes on the market together with low interest rates combines to make the present an excellent time to buy a home. Home prices will not begin to stabilize until the number of Bank Owned Properties (also known as (REOs) begins to decline.

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. The number of U.S. households is expected to increase 15 percent over the next decade, creating a continued high demand for housing. Even with the lower appreciation levels in home prices, there will be a strong investment incentive over the long term to buy homes in North San Diego County. The economic stimulus package passed recently by Congress and signed by President Bush now offers safer and more affordable opportunities for people to buy homes. The temporary increases in federally insured and conventional loan limits could stimulate 250,000 home sales nationwide and, buy allowing owners of distressed properties to refinance, could rescue as many as 210,000 home from foreclosure nationwide.