17 Nov Report: San Diego real estate dips in the summer
Real estate in San Diego slowed in August, wrapping up a brisk summer buying season.
S&P/Case-Shiller Home Price Index figures released last month found that from August 2012 to August 2014, prices of homes for sale in San Diego increased 6.2 percent. While impressive, the figures are still well below record-breaking 21.5 percent gains from August 2012 to August 2013, when investor purchases and foreclosure resales dominated the market.
Historically, the real estate market in San Diego peaks in the summer. Despite the decline, analysts remain confident about San Diego real estate. Flipping, or buying homes, repairing them and putting them back on the market, helped fuel growth in the estate market but has now decreased. Now, the real estate market is driven more by supply, demand and wages, with lower appreciation in recent months after months of record-setting growth in 2012 and 2013.
Real estate experts had been concerned that too much appreciation was unsustainable. It is now less of a concern now that prices have normalized and investor-fueled activity has slowed.
Separately, repeat sales of single-family homes for sale in San Diego fell in August, to 203.7, from 203.9 in July, according to the local index. San Diego was among a number of cities around the country with similar declines, including San Francisco. San Diego real estate ranked 12th out of 20 cities listed in the index.