For those actively investing in the real estate market and/or working in it know first hand how dramatically different it has behaved in 2012 than in recent years. This is the most glaringly positive year in San Diego County real estate we’ve had since the recession. With 2012 over, we did an analysis of the 2012 productivity vs. 2011 and the results are incredibly encouraging for the future of the market. This last year showcased impressive growth in the values of San Diego County duplexes, triplexes, and fourplexes. Please take a look at our graphs and charts below:
Average and Median Sales Price
These percentage changes are staggering numbers. Such growth cannot be sustainable for many years but most signs point toward further growth in 2013. How much growth is yet to be seen. Today’s market is a stark contrast to how it was just 1-2 years ago and the numbers reflect that. This is further exemplified in the chart below:
Days on Market
The significant drop in ‘Days on Market’ is just as impressive as the substantial price increases shown in the charts above. These numbers reflect that not only are properties selling for higher, but they’re selling faster. Much faster.
Contributing Factors
The main contributing factor to the development of this new market is the abundance of capable and ready buyers/investors. While just a year ago, buyers were still hesitant to purchase, they are now significantly more aggressive in searching for deals and pulling the trigger to buy. Especially with the drop in interest rates last year, we are seeing much more money in the hands of buyers than before. Although we see much more buyers on the scene, we are not necessarily seeing an increase in inventory/sellers. Until this balance of supply and demand reverts back, we don’t expect to see this positive market trend to stop.
It’s our expectation that 2013 will experience further growth in sales values and further reduction in Days on Market. We’ll continue to update you on the statistical growth and trends we see in the market. Keep an eye on our blog and as always, please don’t hesitate to get in touch for help investing or selling your property.
Information gathered from Sandicor. Information is deemed reliable but not guaranteed. See our full disclaimer.
