17 Feb Are San Diego home prices higher now than in 2007?
People always ask me how is the market now compared to the peak of 2006-2007. Well there are a couple things to consider but I think I can break down for you. I’ll begin with my example for Carmel Valley in San Diego. The median home price for a Single Family home in 2007 was $1,000,000. Now for 2015 the Median home price for single family homes in Carmel Valley is 1,050,000.
Now that is about a 5% increase compared to the peak of 2007. But you must keep in mind that interest rates floated around 6.5% in 2007 compared to 4% today. But based on your monthly payments you would actually be paying less for the home overall in 2015 then you were in 2007. Make sense?
Here’s an example:
House in 2007 $1,000,000 – 6.5% Interest Rate + with 20% down payment comes to $5,057/month (Principal & Interest Only)
House in 2015 $1,050,000 – 4% Interest rate with 20% down payment = $4,010/monthly (Principal & Interest only)
As you can see the house bought in 2015 is dramatically more affordable then the home that was sold in 2007. Granted the people that bought in 2007 probably refinanced at some point in the past 5 years but it is definitely something to think about if you are considering buying now.