24 May San Diego home prices roar back to pre-recession levels
San Diego home prices soared to $489,000 last month — reaching levels not seen since before the recession, according to recently released figures from real estate data tracking firm CoreLogic.
Compared to April of last year, median prices of homes for sale in San Diego rose 7.5 percent. The rising numbers come at a time when the real estate season in San Diego typically kicks into high hear and boost optimism that the market has officially recovered. After a slow start this year, prices have been on the rise for months. Prices have picked up, as job growth, low mortgage rates and a sellers’ market fuel pent-up demand in San Diego real estate.
In March, home prices rose dramatically. At that time, CoreLogic reported prices of homes for sale in San Diego reached $478,000 — their highest in nearly nine years at that time. Now, figures are even higher. San Diego median prices have not hit this level since before the recession, when it peaked at $517,500 in November 2005.
San Diego real estate on fire
The last time median prices were this high was in the summer of 2007. Still, despite the good news, the number of overall home sales in San Diego County fell nearly 2 percent from April 2015, at 3,980. And some San Diego real estate experts remain concerned the housing inventory is too low and the median income price of homes for sale in San Diego is shutting out many would-be first time housing buyers.
Wage growth keeping up with rising home prices is another concern. Approximately 28 percent of homes were considered affordable in San Diego County in the first quarter of 2016, said a recent report from the California Association of Realtors. That’s the same as it was during the first quarter of 2015. That means a household would need to make $110,286 a year just to cover the $2,757 monthly mortgage, taxes and insurance payments required on a home with the median price.
And wage growth keeping up with rising home prices is another concern. From the first quarter of 2014 to the first quarter of 2015, real wage growth increased 1.2 percent in San Diego County, accounting for inflation, according to data from the state Employment Development Department and the federal Bureau of Labor Statistics.
But home prices keep rising. Newly-constructed homes in San Diego County saw the biggest hike – rising 16.5 percent from last year. Condos increased 5.7 percent and resales increased 7 percent, respectively, CoreLogic found.