San Diego Sees An Increase In Home Sales In The 4th Quarter!

If you wait to buy, how much will it cost you?

This sounds like good news doesn’t it? Well it’s good news but the unfortunate part of this is that home prices fell; though less than one percent. San Diego’s real estate market is viewed by many as a housing market indicator as it was one of the first cities to experience the drop in housing prices.

Though I’m a bit surprised that the number of home sales in the San Diego housing market went up I must point out that two factors might be the source of this increase in sales.

The first is the cyclical drop in prices in the 4th quarter in almost every real estate market across the nation. The second factor that I believe played a part is the availability of buyers to still receive fairly low mortgage rates. Rates have been on the move lately in the upward direction and this could cost buyers that wait a great deal.

The predictions are still coming in on what’s going to happen in 2011 but what we’re seeing and reading is that the market will probably stay flat the beginning of the year. Price appreciation has been predicted to be roughly around 3% to 4% or so for San Diego. Setting aside mortgage rates we still have to wait and see what’s to happen in the foreclosure market since we can expect that they’ll start again. The recovery of the real estate market is a major factor in the overall economic recovery of the nation and I just hope we get back on solid ground soon.