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Monday, May 23 2011 - By Autumnn Darden
Distressed properties in San Diego are on the rise.
According to recent information from Fidelity Pacific Real Estate, the market in San Diego recorded some improvements during March, however, the gains were minimal.

During the month, home sales increased by 2.8 percent, which is far below the monthly average of 7.5 percent experienced during the last several months.

Furthermore, sales were driven by two sectors - home costing below $200,000 and above $1 million. Fidelity relayed that sales were primarily driven by first-time homebuyers, as the reduced prices of properties intrigued those interested in purchasing and moving into their first home. Also helping the market is the number of homebuyers purchasing luxury homes, as the price cuts associated with these properties are also greater.

"Almost half of sales are homes priced under $300,000. Sales of homes over $400,000 are well below the 2007 sales peak," Fidelity relayed in its report. "Homes under $500,000 make up three-fourths of sales, although they are only 60 percent of listings."

The median price of homes in San Diego during March was $321,750, meaning more than half of the homes sold during the month were for less than the average price - potentially an indicator of the number of first-time buyers coming to market.

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