San Diego real estate blog - Peter Toner

Would you believe it? In some areas of the nation, it is the city that is the one stepping up to the plate to assist areas hardest hit by the mortgage meltdown. Seems a bit far fetched, but according to many recent reports it is quite true.

While the federal government is dragging their feet trying to agree on what step to take next, across the nation metropolitan areas such as Boston, Philadelphia, Los Angeles, Baltimore and Trenton are taking matters into their own hands.

Communities that were once thriving are now turning into vacant rows of houses, and in some areas criminal activity is further depreciating the neighborhood value. City officials are holding the same lenders who wrote     “liar loans” and other fraudulent mortgages accountable for their bad business and suing the companies in hopes to recoup the monetary losses of their communities.

What’s a City to do in circumstances like this? Assist those who are entering default, those who have lost their home to foreclosure, clean up vacant neighborhoods, assign more neighborhood patrols for areas hit with crime, and even sue the lenders that have caused the economic losses of the community? Will the cities actions be able to help? Better yet, will more cities step up to assist their communities?

For San Diego County the changes in the market have made home prices once again obtainable to many, rather than just a few. There are areas of San Diego where home prices have dropped by 50% compared to sales prices of 2005 and 2006. The areas hardest hit are the inland suburban areas from North to South of San Diego County. Those communities located along the coast are struggling to hold onto their value, but so far have continued to remain steadfast.

Is it a right time to buy, can you find a deal, has the market hit bottom? With financial analyst predicting mortgage rates may be on the rise is it safe to sit and wait for “the bottom,” when now more than ever may be a more “affordable” time for San Diegans to buy…