19 Jan Real estate in San Diego ends 2014 strong
The housing market in San Diego County ended 2014 with a bang, with the number of homes sold and median prices of homes for sale in San Diego setting records for a strong finish for a year marked by slower activity.
The median price for a home sold in San Diego was $440,000, up 4.8 percent from December 2013 to December 2014, according to CoreLogic DataQuick real estate figures. San Diego real estate transactions increased 23 percent, from 2,675 sales in November to 3,290 properties in December. Both benchmarks set records. It marked the first time since September 2013 that annual home gains and the number of real estate sales both had increases in the same month. The home gains were the largest since March 2013 figures, which rose 35 percent when compared to February of that year.
San Diego real estate analysts say the gains were due to several reasons, as activity generally increases at the end of the year in an effort to close deals before year-end. December also had five more business days than Nov. 2014, and December’s uptick might also be due to the slow summer buying season and pent-up demand.
2014: San Diego real estate year in review
Overall, 2014 was a good year, though activity cooled a bit during the year after record-setting gains in 2013 as investor activity and foreclosure sales fueled the market. Unlike 2013, the market naturally corrected itself last year after record gains. Traditional factors such as home value gains, affordability, employment and wages dominated the market. Still, despite slower appreciation gains in 2014 compared to the previous year, the median price for homes in San Diego reached a seven-year high at $450,000, up 8 percent.
Last year the number of homes for sale in San Diego remained low with 6,773 active listings, according to the San Diego Association of Realtors. That’s only about two months’ supply, well below what a healthy market would typically have.
Experts are predicting a strong 2015. They predict price gains and demand will remain strong, with wage, growth, employment, and supply and demand continue to impact real estate in San Diego with gains hovering near 4 percent and a slight uptick in interest rates — about 0.5 percent, according to earlier media reports.