13 May Rising San Diego home prices create opportunities for sellers
High demand, low inventory and record breaking prices of homes for sale in San Diego have created a sellers’ market — just in time for what San Diego real estate experts predict could be a blockbuster summer.
San Diego real estate executives are optimistic as the summer selling season shifts into high gear, Historically, the real estate market nationwide tends to fare better in the summer as more homeowners buy property while school is out and as the weather warms up. San Diego is no exception and, this year, there are even more reasons for optimism: CoreLogic reported prices of homes for sale in San Diego reached $478,000 in March — their highest in nearly nine years, according to the most recent figures available.
The San Diego real estate market has reached a frenzied pace; everything from the sale of existing homes to new construction has increased. In San Diego County, home prices increased 5.1 percent year-over-year, according to CoreLogic. Prices on new construction homes increased 28.1% in March — one of the most sizeable jumps in recent real estate history — which caused the median price of new homes in San Diego County to leap to $634,000 in March. Now home sellers are reaping the benefits. It is not uncommon for a property to have 4 and 5 competing offers as more homeowners seek to buy property in the county at the same time as inventory levels dry up.
This is a stark difference from just a few short years ago, when foreclosure sales ruled and the market was in the midst of recovery. The most recent housing numbers are still below the November 2005 peak of $517,000 in San Diego County, but lower mortgage rates and debt-to-income ratios have enticed a new crop of home buyers who might otherwise not be able to afford to buy. That is helping offset higher home prices and, as a result, San Diego communities such as Oceanside, Fallbrook and Carmel Valley are leading home sales and breaking sales records of their own.
Despite the higher home values, the amount of sales have actually decreased. The San Diego Association of Realtors reported home and condo sales fell in March 2016 compared to the same time last year. It found 1,885 single-family home transactions in March, but that is 7 percent less than March 2015. Might the market be a “victim” of its own success? Experts doubt it, and predict stronger sales, steady appreciation and more first-time home owners this spring and summer as the market recovers from what had been a slow start to the year.