22 Aug Median price on homes for sale in San Diego dips, but real estate market remains healthy, experts say
After months of skyrocketing home appreciation on real estate in San Diego, housing values are headed back to normal.
In July, the median price for a home sold in San Diego was $445,000 – 6.6 percent higher than the median price in July 2013, according to CoreLogic Data Quick figures. While the appreciation growth remained steady in July, it’s still nowhere near the 22.1 percent growth experienced during 2013 in San Diego. Double-digit growth helped San Diego real estate to the #1 spot for the most improved performance year-over-year in the country, as the area bubbled over with investor properties.
Those healthy gains had led some San Diego real estate experts to speculate if the market was headed toward a housing bubble, but they now predict appreciation will eventually settle to about 4-5 percent, which is in more in line with historical data and inflation.
Slowdown for San Diego real estate?
Experts warn the market is returning back to normal after a record-breaking streak of heady progress. From June to July, the median price for homes for sale in San Diego dipped by about $5,000. There were 3,474 transactions recorded in the county last month, down from 3,736 in June. That’s an 18.5 percent decline compared to the 4,260 transactions recorded in July 2013.
Listings are up, with 8,122 active listings in San Diego last month, up from 5,443 the previous year, according to the San Diego Association of Realtors. Across Southern California, the real estate market has hiccupped, with sales falling to three-year lows amid higher interest rates and stricter lending standards.