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The number of San Diego foreclosures has been steadily increasing. The number of foreclosure filings continued to surge in March, increasing by 47 per cent from the same period a year earlier and 7 per cent from February. According to San Diego California real estate brokers, sub prime loans are adding to the problems. Sub prime loan lending has grown rapidly in recent years. These loans accounted for 2.4 per cent of all outstanding loans in 2000, but by the end of last year, they accounted for 13.7 per cent. A lot of real estate incentives are also adding to the rate of foreclosures. A lot of individuals fall for the incentives and buy a San Diego house. But soon afterwards realize that they cannot afford the homes and therefore get into foreclosure. The high rate of foreclosures on San Diego houses is also affecting the median price of homes. The average price of a San Diego house went down from $604,250 in 2005 to $601,760 in 2006. The high rate of San Diego foreclosures and the general slump in the housing market also means that fewer homes are changing hands. At the start of the housing boom in the 1990s, 4 per cent of San Diego homes were sold annually. However, in April 2007, the number of homes that changed hands was less than 2 per cent. San Diego CA real estate agents say the inventory of unsold homes is much higher than last year, and they warn that the figures will go up for the remaining of the year. Because of the slump in the housing market more San Diego house owners are holding onto their homes and waiting for the market to improve before selling their home.
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