Local Experts: Housing Downturn Approaching Bottom

SAN DIEGO UNION-TRIBUNE:

An unusual September jump in home sales, together with the biggest monthly drop yet in prices, could be early signs that San Diego County housing is approaching the bottom of a three-year-old downturn, industry experts and observers said yesterday.

MDA DataQuick reported that the median price for all homes dropped $22,000 from August to stand at $328,000 last month, the lowest since June 2002. The figure represented a 34.6 percent drop from the all-time peak of $517,500 set in November 2005.
Sales jumped 56.4 percent to 3,366 transactions from year ago levels, a reflection of the very low sales completed in September 2007 in reaction to the credit crunch and subprime mortgage crisis.

Though the timing of a recovery will hinge on the course of the overall economy, some observers said the increase in volume suggests that more investors are deciding that prices have fallen to bargain levels and are getting into the market.

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