17 Apr Real estate in San Diego #1 in nation for most improved performance year-over-year

January was a good month for homes for sale in San Diego — the real estate market in San Diego roared back to life, posting its largest January gain since 2004, according to figures released last month by the S&P/Case-Shiller Index.

San Diego had the nation’s most improved year-over-year performance, with a 19.4 percent increase in average home prices in Jan. 2014 compared to Jan. 2013. That’s up from 18 percent in Dec. 2013 year-over-year. The city’s January’s price index also surged 1.8 percent to rank as the highest monthly gain in 20 U.S. cities that S&P/Case-Shiller tracks. Home prices in San Diego increased 0.6 percent, second only to San Francisco’s 0.5%.

San Diego’s real estate market reflects national trends: As of January, average home prices across the U.S. were mostly back to mid-2004 levels. Overall, 20 cities reported an average of 13.2 percent year-over-year gains, S&P/Case-Shiller found. That means San Diego real estate — including homes for sale in Carmel Valley, Del Mar, La Jolla, Rancho Santa Fe, Santaluz and Solana Beach —  is largely on the rise.

Real estate in San Diego has reached record high levels.

Real estate in San Diego is hot, hot, hot!

San Diego real estate numbers were most likely buoyed by a few key factors:

• Labor market. Unemployment in San Diego County dipped to 7 percent in February, from 8 percent a year earlier. Still, the wages of the employed are getting hit hard by inflation and overall fewer employees in the workforce.
• Rising interest rates: Interest rates have inched up, with the average fixed rate for a 30-year mortgage hovering around the 4.32 percent range in late March, compared to 3.54 percent a year ago, according to the Federal Reserve.
• Higher home prices: As the market has rebounded, there are fewer foreclosures, higher prices and more homes for sale. The San Diego Association of Realtors found that the housing  inventory in San Diego County increased 44 percent, to 6,099 active listings in January.