19 Dec San Diego real estate price gains hit two-year low

Home appreciation slid to a two year-low last month as the median price of homes for sale in San Diego fell to $430,00 in November — the lowest gains reported since June 2012.

Month-to-month, home gains are down but the decline is smaller when compared year-to-year. Median home prices were down 2.2 percent from October but up 3.6 percent from one year ago, according to recent CoreLogic Data Quick figures. Real estate analysts closely watch home appreciation gains and inventory for signs of a slow down.

The lower gains don’t seem to worry San Diego real estate experts, who remain confident in the long term outlook for San Diego real estate. They said double-digit home price appreciation rates, which once hit record highs of 24.1 percent in June 2013 amid heavy investor activity, were unsustainable long term. At the same time, foreclosure resales have fallen drastically, from more than half of real estate sales during the recession to just 3.6 percent of all transactions now.

The holiday may also to be blame, as buyers traditionally shift their focus to holiday purchases instead of home buying. The number of homes for sale in San Diego County in November fell 11 percent, to 2,675, with cash buyers making up 23.9 percent of November’s sales. That was a 23.5 percent increase compared to October but down 28.1 percent from November 2013.

Overall, November marked a slow month for real estate across Southern California. Traditional factors such as income, wages and affordability remain key factors in home buying decisions with 30-year mortgage rates falling to 4 percent in November. There were 7,836 active listings in San Diego County, up from 6,848 in November 2013, according to the San Diego Association of Realtors.