08 Jul San Diego real estate prices surge but market chills
The price of San Diego real estate continued to climb in May – but at a much slower pace than it did one year ago.
The median sale price for homes for sale in San Diego reached a seven-year high at $440,000 in May – up 8.2 percent from $406,500 in May 2013, according to DataQuick real estate data. While impressive, the appreciation is nowhere near the 21.3 percent sales gains from May 2012 to May 2013. It’s led some San Diego real estate experts to think the area’s real estate growth may have reached its peak.
In January, real estate in San Diego posted its largest gain since 2004. Then, it had the nation’s most improved year-over-year performance, with a 19.4 percent increase in average home prices in Jan. 2014 compared to Jan. 2013. It ranked as the highest monthly gain among 20 U.S. cities, according to S&P/Case-Shiller data.
Will the San Diego real estate market ever post those record gains again? It’s unlikely, San Diego real estate experts said. Appreciation rates of more than 20 percent are now a distant possibility, given more housing inventory, a cooling investor market and more constraints on affordability.
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.
Despite the slower pace, San Diego real estate still fares much better than it did just a few short years ago, with San Diego real estate — including homes for sale in Carmel Valley, Del Mar, La Jolla, Rancho Santa Fe, Santaluz and Solana Beach – largely on the upswing and continuing to rise.