26 Jun San Diego Real Estate Prices Continue to Rise
The price of real estate in San Diego continued to climb in May – but at a much slower pace than one year ago.
In May, the median sale price for homes for sale in San Diego reached a seven-year high at $440,000 – up 8.2 percent from $406,500 in May 2013, according to real estate tracking firm DataQuick. While impressive, it’s nowhere near the 21.3 percent sales gains experienced from May 2012 to May 2013, leading some to think the area’s real estate growth may have reached its peak.
Is San Diego real estate cooling off?
Earlier this year, San Diego real estate was #1 in the nation for most improved performance year-over-year. In January, the market had a 19.4 percent increase in average home prices compared to Jan. 2013, according to the S&P/Case-Shiller Index. At that time, the market in San Diego reflected national trends, as average home prices across the U.S. were mostly back to mid-2004 levels.
Those types of appreciation rates like that are now unlikely, given more inventory, a cooling in the investor market and more constraints on affordability, San Diego real estate experts said. Recent numbers may bear this out: In May, 3,654 transactions closed – just 10 less than April – but well below the 4,236 transactions that closed in May 2013.
Typically, real estate heats up during spring and summer months, which are widely considered peak buying seasons.