San Diego housing market continues to shine
People thinking about getting back into the housing market have more encouragement for doing so with the latest positive report from the Standard & Poor's/Case-Shiller Home Price Index. If the recent report is enough to inspire investigating real estate in San Diego, a few tips for keeping your credit score up could come in handy as well.
Home prices rise in San Diego
The recent S&P/Case-Shiller Home Price Index, which collects and analyzes San Diego housing market data for the month of August, revealed that residential home prices rose in the county by 0.9 percent in August over July. Year-over-year, San Diego County home prices are up 1.9 percent from August 2011.
"What's described as good news also is evident in markets that were in far-worse shape than San Diego County during the recession," real estate journalist Lily Leung wrote in the San Diego Union-Tribune.
Local news source KPBS indicated that many are saying that the housing market is only on the cusp of a recovery, meaning it is expected that improvements in market conditions will only continue to flow in.
"What our anticipation here is, we're gonna pick up paces from here," said Marney Cox, the San Diego Association of Governments chief economist, KPBS reported. "We'll no longer see the 1.3 percent rates of growth, or 2 percent, from this last quarter. But instead we'll begin to rise above that and hit the 2.5 and 3 percent rates of growth."
Tips to maintain your credit score
With indications of continued housing recovery in San Diego, it logically follows that more people are opting to get back into the San Diego housing market. Leung recently shared a number of points on the value of maintaining a good credit score for those entering the market again.
Leung explained that after a foreclosure, it takes consumers anywhere from four to seven years to be able to qualify for mortgages that are either owned or backed by Fannie Mae or Freddie Mac mortgages. These two lenders make up a significant majority of the home-loan market, and their dominance on the market makes it a particular challenge for defaulters to return to the market.
Leung cited a study conducted by senior economist John Krainer and research associate William Hedberg revealed that borrowers who terminated a mortgage for reasons other than a default or bankruptcy - i.e. relocation, trade-up or trade-down - were able to gain home financing again 2.5 times faster than borrowers who defaulted.