How the rate of California foreclosures affect the San Diego markets in terms of real estate purchases and sales is very interesting. San Diego County and the city of San Diego both depend on each other for survival, and “America’s Finest City” (which is what San Diego bills itself as) is facing a series of budget challenges that are only exacerbated by the rate of foreclosures in the state.

For pretty much all of 2009, the average sale price of a home in San Diego fell noticeably. And even though $300,000 might seem like a lot for a home, especially for those from distressed cities in the Midwest, that price is a very significant decrease in the price of a home in San Diego and San Diego County from pre-2009 levels.

There seems to be a very tiny sliver of sunshine peeking through the overcast that’s been sitting on the Golden State like a pall, at least as it has to do with real estate in San Diego and in a few other very limited areas. September through November of 2009 actually saw a price increase of about 1.6% on the sale of a home. It’s at least a beginning, most would say.

Still, property values in San Diego have declined by about 35% over the last five years, so anybody who bought in to the real estate market during that period is looking at a home that now is probably worth much less than they owe on it. Sad to say, but anybody who bought into those properties can have little chance of improving their positions in the short term, it must be said.

Another reason or factor that seems to be exacerbating the rate of CA foreclosures is that many more people than used to be the case are now considering foreclosure is a logical first step rather than as a last resort, which is what it used to be thought of as. This has affected San Diego just as much as it has many other cities in California and around the nation.

To understand how hard-hitting this decline has been, consider that the average listing price for a home in San Diego in 2009 was nearly $496,000. Now, match that up with the average home sales price of just a bit over $300,000 and it’s easy to see why the rate of CA foreclosures they continue to be an issue at least until home prices can begin a concerted upward swing.

For those who assume that one can always engage in a short sale, which is selling the home — after the lender has agreed to do so — for less than it is owed (with the lender usually writing off the difference), they should know that the state has been going after the difference for taxes. Looking at a significant tax bill in the event of a short sale could actually be forcing even more people into foreclosure.

San Diego is a beautiful city with a variety of diverse and extremely attractive properties in its housing inventory. Investors looking at the decline in prices and who are willing to sit on a property they buy for several years might actually make something of the market, despite the current rate of CA foreclosures in the state and, especially in San Diego, so keep that in mind when thinking of investing.

When it comes to purchasing houses that have been foreclosed, you want to consider looking into Ca foreclosure. The Ca foreclosures have a list that is updated every day to give you the knowledge about foreclosed homes that are up for sale.

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