Everyone has the economy on their minds, and for good reason. It has been a tumultuous few years and the real estate market has endured the worst effects of the recession. Recent months, however, shed positive light on the future prospects of the real estate market here in San Diego. Recent San Diego Association of Realtors (SDAR) statistics reveal a positive increase in sales prices of single family homes and we’ve been witnessing similar progressions in the 2-4 unit market.
A recent edition of the San Diego Daily Transcripts online show called “The Scoop” features SDAR president Donna Sanfilippo reviewing the local statistics. Among the more exciting stats that she cites are the price increases in single family homes from Sept 2011 to Sept 2012. According to SDAR statistics, there was an increase in median single family home prices by 12.5% and 14.3% for condominiums. Click here to see the full interview. It would be easy to assume that home prices are stagnant considering the state of the economy nationwide, but the statistics prove otherwise.
Another interesting statistic worth referencing is the inventory of homes for sale on the market. The SDAR president quoted a 2 month supply as opposed to the 6 month supply previously existent in the market. From personal experience and feedback from active brokers, this shortage of inventory is evident in our daily search for our buyers. Many buyers of single family homes today have to compete for homes that they would like to purchase- a sharp contrast to the market of just a few years ago. Often times buyers today will have to compete with other buyers willing to pay cash, pay above list price, or even purchase with no contingencies.
If conditions continue to remain as they are (low rates, low inventory, etc) we can easily see this market progression to continue throughout 2013. We’ll keep an eye on these statistics for you. In the meantime, don’t hesitate to get in touch if you’re looking to jump into the real estate market or want to discuss these recent reports in further detail. Also, check out our 3rd Quarter Market Reporty for 2-4 Units by clicking here and see how the 2-4 unit market has experienced similarly strong increases.
[…] The first chart show the average and median sales price for the first three quarters of the 2012 year compared to the performance of the first three quarters of 2011. Overlaid in the green line is the percentage change from 2011 to 2012. You’ll notice that the numbers are significant. There are various factors that could have contributed to this namely the dramatically low interest rates, rise in rental rates, and general incline in consumer outlook. As a practitioner working in the sales of these properties on a regular basis, I definitely see these price increases firsthand. Prices in single family homes also reflect substantial rises in prices as can be seen in our post here. […]