Staggering prices fueling county real estate mania
signonsandiego.com
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San Diego County housing prices have reached staggering heights, minting tract-home millionaires each month. With the April median price hitting $439,000, houses appreciated $967 a day in that month – more than most people earn in a week.
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'Sense of anxiety'
In San Diego County, only about 15 percent of households are able to afford the median price of a home, the state association of Realtors has reported. Ever-rising prices and houses fetching multiple offers are leaving many would-be home buyers with the nagging feeling that they're locked out.
"It creates a sense of anxiety," Goldbart said. "The attitude is, 'I don't want to miss out. I don't want to lose out.' The urgency is created by a mass psychology of wanting to win, wanting to be part of the 'haves.' "
Desperate to get in, more are turning to creative financing. Nearly 72 percent of loans processed in April in San Diego were adjustable-rate mortgages, according to DataQuick in La Jolla.
Others are taking out interest-only or negative amortization loans, in which the balance owed ends up higher after a few years.
"In my business, three of four people are asking for interest-only loans," said Hal Weinshank, senior loan agent with Mortgage Partners in San Diego. "Two to three years ago, I barely saw that at all." |
