26 Jul San Diego real estate increases
Home prices jumped across Southern California over the past year, and San Diego real estate was no exception — increasing 6.4 percent over the last 12 months, according to the S&P Case-Shiller Home Price Index. The median prices of homes for sale in San Diego beat national figures of 5 percent in May.
While the market has increased, the price increases on San Diego real estate is relatively flat or have fallen since the beginning of the year. In January, the median price year-over-year was 6.9 percent but fell to 6.2 percent in February, 6.2 percent in March and 6.3 percent in April. Affordability and high demand are thought to be factors, San Diego real estate experts said. The San Diego real estate market has long battled affordability, particularly when the median price of a home for sale in San Diego County reached $495,000 in June, CoreLogic reported.
San Diego real estate gains
San Diego real estate made the #5th “hottest” real estate market in the country in June and summer sales are brisk. Overall, San Diego leads the state in real estate growth. The region’s low unemployment, low interest rates and a positive consumer outlook have helped drive prices of homes for sale in San Diego, real estate experts said.
The market, meanwhile, continues to return to pre-recession levels and, in some cases, beat those figures. The market is extremely competitive, the housing inventory is relatively low, and prices are shutting out many would-be first time housing buyers. 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.
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.