All statistics used for this article were found in reports from Sandicor and SDAR.* There may be small errors in the reports, but I've checked the figures, and I believe the over-all message to be accurate (Del Mar home values and the demand for homes in Del Mar have dropped significantly in the last year or so).
2010 was not a good year for home values in Del Mar, CA, San Diego's highest-priced zip code. However, if you're a homebuyer looking to buy in Del Mar, you will be happy to know that prices declined from 2009 to 2010 (even though the median sale price for San Diego County inched upward). In fact, the median sale price of a detached (single family) home in Del Mar has fallen from $1,700,000 in 2005 to a six-year-low of $1,325,000 in 2010 (based on all home sales in the Del Mar 92014 zip code) for the entire year. That's a 22% drop. Another interesting statistic was the number of homes that sold, only 94 in 2010 compared to 130 in 2009 and 131 back in 2005. Roughly 30% less homes were bought in Del Mar this past year compared to 2007, when 135 homes were sold.
The average sale price is higher than the median sale price, but it also has seen a significant drop in the last few years (down to $1,742,968 in 2010 from its peak of $2,303,069 in 2007). In other words, the median sale price of detached homes in Del Mar has fallen $375,000 since 2005, and the average sale price has fallen more than $550,000 since 2007!
It's also taking much longer for the average home in Del Mar to sell (from an average of 65 days on market in 2005 to over 100 days on market in 2010). To top it all off, there are currently 131 detached homes listed for sale in 92014 (ranging from $599,900 to $61,000,000), a 16-month supply based on the last six-months of sales data (46 have sold in the last six months).
As a home buyer, you can use this data to get a general understanding of the marketplace. I still highly recommend that you dig deeper (because real estate is LOCAL) as you narrow down your home search. One thing I do with each client is analyze the local statistics based on your specific search criteria, so you can see what's going on (and learn what to expect) in your specific market. Of course, that's just one advantage of hiring an exclusive buyer's agent to represent you throughout your home purchase.
*Most of the reports used for statistics in this article can be found at http://www.sandicor.com/resources/sales-statistics/ and at http://sdar.com/Neighborhood_and_Community.php. Some data was found using my REALTOR® access to the Sandicor database.
Justin Gramm is the founder and principal broker of Globella Buyers Realty, your San Diego Exclusive Buyer Brokerage. He also writes this blog, "For San Diego Home Buyers."
Exclusive Buyer Agents do not list homes for sale and never represent sellers. They have no "inventory" to try to sell you. They can represent you in purchasing any home. They are specialists at representing buyers only on the buyers' side of the transaction. Exclusive Buyer Agents work to get buyers the best price and terms when they buy a home.
If you have excellent credit and plan to buy a home or condo in San Diego County within 90 days, contact Justin Gramm to hire an agent on your side of the transaction. Call Justin at (858) 437-2662 or E-mail.