How's The San Diego Real Estate Market For April 2011
There's only one direction to go in once you've hit bottom.
Do you think about the answer to this question on a regular basis? All of us in San Diego County wonder what the status is of the San Diego housing market for various data on the our local market as well as the state of the California real estate market is constantly coming out and we feel it important to keep the general public informed.
The most recent numbers show that the San Diego real estate market is still trying to recover but certain factors are stalling this recovery effort. Though San Diego’s real estate market has outperformed most other metro areas in the country some things are similar throughout the country affecting all markets in the same manner.
As far as San Diego’s housing market, our numbers showed a very small drop in prices. The drop in prices amounted to about 1.1% compared to a year ago at this time. In addition we saw a drop in the number of homes sold in the County equating to about 0.5% compared to the same time a year ago. Despite both of these figures the San Diego real estate market saw an increase of 7% in sales volume from March to April of this year. We also saw our median home prices stay above the $300K mark at around $321K or so.
We all must remember that the median price isn’t the average as it’s calculated differently than the latter. Also one must consider that in order to get a more accurate picture of any specific market one should ask an agent for specific data and sales figures about said area. Though most of the country, state and County have seen price drops, the size of the impact felt is different from area to area.
One of the major factors keeping San Diego’s housing market stagnant is the new lending regulations and the difficulty it presents to buyers seeking financing for this major purchase. Now more than ever buyers should look into getting pre-approved for their home loans as this will save time and unnecessary stress when the time arrives to move forward with their home purchases. Having financing prepared is probably the most important thing any buyer can do in this, or for that matter any, market to ensure a smooth purchasing experience.
Another factor being observed out in the San Diego real estate market is the influx of investors scooping up properties at bargain prices. Though we may not think prices are a bargain we tend to forget where it is we live. San Diego with it’s ideal year-round weather and location is worth more than other places in the country. Investors know this and this is why they started to buy San Diego real estate more and more. Buyers are now being beat by investors looking to buy and hold property anticipating the real estate market recovery.
Right now it’s safe to say that the San Diego housing market is sideways with microscopic ups and downs. You might say it’s bouncing along the bottom. We might not think so, but the numbers say other wise. One thing is certain, when you’re at the bottom there’s only one direction you can go in.
