home prices

San Diego One of the Markets to Watch in 2011

by Steve Lines on October 13, 2010
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The Urban Land Institute analyzed the top investment markets to watch in 2011, and San Diego ranked in the top 10, the San Diego Union-Tribune reports.

The 32nd annual “Emerging Trends” report is based on 275 interviews of industry experts. They noted that coastal markets like San Diego will fair better than other markets across the nation.sdmarket 300x180 San Diego One of the Markets to Watch in 2011

“The transition from more to less will be difficult and it will involve getting used to a smaller real estate industry,” said Stephen Blank, ULI’s principal researcher and adviser in the study. “Harsh realities aside, real estate is coming off the bottom with improved prospects across all markets.”

On a 1-9 scale, San Diego scored a 5.63–but Washington, the top position, scored just a 7.1.

Market strategists likened the market to that of Los Angeles, though San Diego lacks an international airport hub. Unfortunately, as domestic businesses grow bigger, they move headquarters which makes traveling a bit of a pain. On the contrary, close-by transportation areas can cause unwanted noise and traffic.

San Diego, like everywhere else in Southern California, has seen a significant drop in housing prices and as of August, home prices are still being slashed.

The overall assessment concluded that:

In particular, downtown condos are badly oversupplied. Demand builds back for housing in better neighborhood: more buyers with cash want to take [advantage] of market bottom [near] Pacific coastlines.

“What’s not to like about arguably the country’s most desirable climate? Public-company homebuilders buy relatively cheap residential land to prepare for an eventual upturn. On the wobbly retail front, put a hold on any more lifestyle centers.”

sdsold 300x208 San Diego One of the Markets to Watch in 2011As of September, reduced home prices seem to have leveled out. Many market analysts agree that the national market has bottomed out and is slowly headed on its way back up. San Diego is a popular destination for a multitude of lifestyles. For buyers, the current prices are a steal and a great time to look for an affordable new home that fits their family needs

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San Diego Home Prices Taper Off

by Steve Lines on July 19, 2010
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A recent article in the San Diego Union-Tribune reported that San Diego home prices will begin to taper off at the tail end of the summer buying season.

San Diego homes saw rapid increases in the past few months, but are now slowing after the tax credit expiration.

The median price of a San Diego County home was $335, 500 in June. It had been $340,000 in May. Compared to a year ago though, San Diego County homes are still showing increases.

Additinally, 2010 marked the highest number of June home and condo sales in 4 years.

“I don’t see a big sales drop. There will be a small dip in the median price but nothing to worry about,” said Mark Marquez, president of the San Diego Association of Realtors. “We still have a solid base of buyer activity, but it won’t be at May and June levels. It’s not as brisk because there are no deadlines to rush to meet. We are seeing a rise in inventory, and people will probably negotiate harder, and they have time to do so.”

The median price for single-family resale’s increased last month. It rose to the highest price since July 2008 reaching $380.000.

New home median prices also rose, going from $399,000 in May to $431,000 in June. New homes accounted for 44% of home sales in June.

Most analysts expect the housing market to remain somewhat stagnant while the effects of the tax credit stimulus continue to trickle through it.

“Right now, I don’t see any reason to see a big surge in sales, just a very slow recovery based on the economic signals we have now,” said Norm Miller, a University of San Diego economist and Co-star Group vice president. “But if you can jump into the single family market now, you can’t do any better. Prices are not likely to go down, and interest rates are so low.”

The housing market is no doubt still affected by the sale of distressed homes, but the number of foreclosures on the market is slowly declining. Foreclosures currently make up 28.4% of the housing inventory, down from 38,6% this time last year.

“Home values going forward will depend on how lenders handle the remaining distress out there,” said DataQuick analyst Andrew LePage. “My sense is if there are not a lot changes in the economy and the level of foreclosures sales doesn’t rise, prices will be pretty flat through the end of the year. It looks like we’re in a period of stagnation that normally follows a large decline.”

Like Norm Miller noted earlier, home prices are quite low right now and interest rates are lower than ever. Now is the best time for buyers to get their hands on their dream house at a price unseen in ages.

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San Diego Home Prices are Rising

by Steve Lines on July 9, 2010
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Home prices in San Diego are on the rise. In May, San Diego home prices rose 7% from this time last year. According to zillow.com, it is the second highest year-over-year increase in the country. In this same period, home prices nationwide dropped 3.8%.

Zillow creates their home-value index by looking at pending sales on homes, homes that have already sold, and also homes that are not on the market at all to determine the median price. San Diego County’s median home price was $375,400. That’s a 1% increase from the month prior, though that’s still 30.1% below the peak median price in October 2005 where the median was $538,200.

Zillow releases a monthly report on home price statistics. Here is a rundown on current numbers:

In pricing increases, San Diego County ranks only second to Virginia Beach, VA—a metro area. sandiego 300x224 San Diego Home Prices are RisingBut what happens when we compare San Diego to other metro areas in the California area?

San Diego ranks first.

Following San Diego in home price increases are:

  • San Francisco – 5.9%
  • Los Angeles – 5.3%
  • San Jose & Santa Barbara – both had 4.7%

Of the Top 10 markets, 6 of those areas are in California, and in terms of home prices, San Diego has the 9th highest median home price.

The cities with the top gains from a year prior were:

  • Del Mar – 13.3%
  • Poway – 12.4%
  • San Diego – 11.6%

So how does Zillow’s report compare with others?

Last month, MDA DataQuick reported May’s median price as $340,000—a 15.3% increase from last year, and a 4.5% gain from April. Standard & Poor’s/Case Shiller Home Price Index showed San Diego’s home prices rose 11.7% from the year prior, but that report was for April rather than May.

While these numbers come as a breath of fresh air in a stinking economy, we aren’t quite out yet. With the federal housing credits expired, the summer is anticipated to yield some bumpy housing results across the board. High unemployment is another factor affecting the housing market, because realistically, no one is going to buy a house if they are out of work.

Zillow also reported that about 28% of all transactions in San Diego this past May were foreclosure resales. Nationally, foreclosure sales were 19%. Additionally, 34.2% of all non-foreclosure homes sold in the same month were sold at a loss.

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