14 Oct Real estate in San Diego dips in September, but real estate experts remain optimistic
The dizzying pace of real estate in San Diego is cooling off.
The price of real estate in San Diego is leveling off, falling to near historic averages in September after years of double-digit, record breaking home prices that catapulted San Diego real estate to the #1 spot for most improved home appreciation year-over-year. The median price of homes for sale in San Diego County was $445,000 in September, up just 5.5 percent from a year ago, according to DataQuick. Historically, San Diego real estate has averaged 5.2 percent yearly price gains.
Real estate experts remain confident, despite the dip. Recent growth is certainly more sustainable and long-term and has eased fears of a San Diego real estate bubble after year-over-year growth peaked at 24 percent in June 2013. In August, annual appreciation was 8.1 percent, with median home prices at $448,500.
Still, September’s numbers mark the first time home appreciation has fallen to near historical averages since July 2012, when San Diego real estate was still recovering from the housing collapse. Most of those heady gains came because investors bought and sold distressed homes.
Now that the market has self-righted itself, investors no larger dominate the market and foreclosure resales made up just 3.3 percent of transactions in September. Traditional factors such as income, job growth, housing supply and mortgage rates influence the market, though homeowners are still pinched by rising inflation, the economy and other costs.
A last hurrah for San Diego homes for sale?
San Diego real estate transactions were flat in September, falling by 19 sales to 3,305, and activity is down 2.3 percent from a year ago.The number of transactions was nearly flat over the month, declining by 19 sales. Activity in the county’s housing market is down 2.3 percent from September 2013, when 3,383 properties changed hands.
Real estate experts forecast 4 percent to 6 percent annual appreciation, before leveling off to 3.5 percent in the spring when inventory is expected to rise for the peak of the summer home buying season.