San Diego home prices were flat in the third and fourth quarters of last year and have now continued the upward trend in the first quarter of this year with an increase of 5%. Home prices are expected to continue to increase with a recovery in approximately two years to the previous peak reach in 2005/2006. As a result of the home price recovery, the distressed property sales composed of short sales and foreclosures have continued to decrease to less than 11% of total sales from a peak of over 50%. Hopefully, most all upside down homes will have disappeared in 2 years.
The San Diego County real estate market exploded in the first half of last year and slowed a little in the second half. During the year prices increased 24% as shown in the “Market Trends” tab. Prices are expected to increase again this year at about half the rate of last year. The low inventory of homes available for sale last year was one factor impacting the price increase. Although the inventory increased from 1.5 months to 2.8 months by January of this year, it is still well below the normal range of 5-7 months. There is expected to be a real estate shortage over the next five years due to the the increasing demand for homes and very few homes being built.
The key metrics in the San Diego County real estate market are essentially unchanged from last month. See the “Market Trends” tab. This time of year, when few people are out shopping for homes, is a great time to buy and this stable market adds to the buyer’s advantage.
There is good news this month for San Diego home buyers as interest rates are falling this month, there are more homes available for sale and prices have slowed the rapid increases observed during the spring and summer of this year. If you missed the possibilities last year this is now the time to consider buying. See the “Market Trends” on this site.
Before you sign a Solar Power Panel/System lease agreement for your home please give us a call. Title companies are considering them as a lien on the property and will not issue the required Title Insurance Policy when you try to sell the home until this lien is resolved. You need to be aware of the future consequences of these leases because they can be VERY costly to the home owner when you try to sell your home!
San Diego home prices continued increasing in August as well as the inventory of homes available for sale. Mortgage rates are also increasing but at a slower rate than June and July. Take a look at the “Market Trends” on the drop down menu above.
The Federal Housing Administration (FHA) is allowing borrowers who went through a bankruptcy, foreclosure, deed-in-lieu, or short sale to reenter the market in as little as 12 months, according to a mortgage letter released recently.
Even with the average 30-year interest rate climbing to 4.4% the home prices in San Diego are continuing to increase. This price trend is the result of the very low, but slightly increasing, inventory of homes available to purchase.
San Diego real estate prices continued increasing in June with some moderate increase in homes available for buyers. Interest rates are still low but increased from an average of 3.54% to 4.07% in June and are continuing to increase in July. Distressed properties, composed of short sales and foreclosures, have reduce significantly to 20% of the total home sales.
Existing-home sales rose in May to the highest pace since November 2009, when buyers were rushing to make a tax-credit deadline, pointing to a continuing recovery, the National Association of Realtors reported Thursday.