Home prices escalate by 21% within a year
DataQuick, San Diego’s reliable real estate trailer reports that contained housing requirements in the county, coupled with attractive (read low) mortgage rates have escalated home costs/sales in the area to significant limits. In fact so much so that it can be accounted as an all-time high in the recent few years.
And yes, it’s a fact that whether it’s a first-class condo, a chic n’expensive bungalow or an average home, San Diego’s housing market is picking up pace. Countywide, the home sale figure and the median selling prices are seen to be up. $406,500 was the average that a home was being sold in San Diego in the month of May, which is 2% more than what it cost a month back and 21% more than what it was a year ago. As for the last couple of months, the price has been on a 5-year high mark on a steady note.
There is observed an enhanced buyer demand as well. Statistics for the month of May show that across the county 4,236 houses were sold all together, which is undoubtedly the highest that real estate has reached in the last 6 years since 2006 ( which is supposedly the last promising year for housing before it took a nosedive). The sale number in June 2006 was recorded at 4,533…. not much ahead than what May 2013 records actually. The hike is most evident in South Eastern Carlsbad which records the maximum number of property sales, 123 precisely.
So when did home values begin to rise suddenly? As trends show, it’s been almost a year that this has happened, with September 2012 being the harbinger of an explosion in the field. From thereon it’s just been building up, and the last few months have seen a further increase in sale and cost of properties in the area.
Contributing factors? Unusual ones but not unpredictable certainly – many prospective home-buyers, ridiculously low mortgage prices and a restricted market. Some amount of credit can also be attributed to the distressed (short-sales & foreclosed homes) housing market of the county.
Furthermore, as John Walsh, DataQuick president reports, “there’s a seemingly endless stream of investors and non-investors who pay cash and thereby avoid the loan-qualification process.” Cash is still a preferred mode of transaction for all brands of home sellers and in San Diego this was what clinched 30% of home deals in this year’s spring. The realty market of South California has supposedly absorbed a whopping cash total of $4.65 billion in the form of ‘money down’ or purchase price….which is yet another affirmation that buyers today are more enthusiastic about buying houses than before.
Can home prices become more comfortable in San Diego? Probably, if the proprietors are keen to list their properties as per the most recent yearly price-gains. The GSD (Greater San Diego) “Association of Realtors” accounts that approximately 4800 properties are up for sale in the market as of now. Yet, the inventory supply is still 22% less than what it was about a year back.
However, it’s too soon to envisage the future market dynamics at this moment. What is rather predictable is that, with home prices escalating at an express speed in the current situation, more and more sellers are supposedly going to throng the listings with their properties. And such an increase can then act as a factor in slowing down the price appreciation tempo that’s overriding the San Diego County housing market right at this moment.