As reported on Monday by MDA Data Quick, San Diego County’s median home price has increase from 6.9% a year ago to 15.8% this March. Of the six Southern California Counties, San Diego had the most significant increase, followed by Ventura County at 15%. Economist say these numbers can be considered indicators that housing plunge is mostly over, but because of rising interests rates and slow job growth, the general upturn is not likely soon. When the figures are examined more closely it becomes evident that the increase reflects a change in the types of properties being sold. Sales were up for the 21st consecutive month, as transactions involving higher-priced properties broadened the market beyond low-cost starter homes.
Over all, the Southern California area experienced a 14% increase from last March to a median of $285,000, further evidence of the region’s real estate market stabilizing. Some economists attribute the rapid increase to the federal government stimulus policies and tax credits, which seem to have been successful. The problem is the policies are coming to an end, and when they do, there is a fear of another plunge in the market. Even if the economy improves, housing will not necessarily improve with it. While individual property values are not changing, there is a general feeling that since there is no longer deterioration in home prices, things are looking up.
Sales across the region totaled 20,476 up 5% from last year, but still below the 23 year average of 24,936. With 3,227 of those regional sales from San Diego and 6,747 from Los Angeles, it is obvious that demand for housing is not rising consistently throughout the region. Although, San Diego’s median home prices are rising at a more rapid rate than Los Angeles, and there is more of a trend of high priced homes being sold in San Diego. According to John Walsh, President of DataQuick, more sales activity will not take place until lending patterns normalize.
While median home prices and sales have seen improvement in the Southern California Region, and more specifically San Diego, homeowners and buyers are beginning to become more optimistic about the future of the housing market. However, economists warn to not let the current trend fool you into believing your individual home has increased in value. Despite the fact that indicators seem to show stabilization in the real estate market, after two years of sales increase we are still below the sales average, which is a reflection of just how bad things were. After such a deep plunge, full recovery is far from near.
Thinking of selling? Call me today.
Nick Alameddin
Broker
C 760.802.4166
F 858.455.0100
DRE License #01426515
If you know anyone looking to sell or buy a home, please e-mail me their name & phone number. I will gladly get them a great deal and provide them bar none service.
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