Your San Diego Real Estate Market Minute
By: Zoraya de la Bastida and Lisa Vomero Inouye
ZBEST TEAM in Real Estate, Keller Williams Realty
Wondering what is happening in the real estate market today and what the market trends indicate? According to the National Association of Realtors®, the news is finally good after the sale of pre-owned homes finally rose in March of this year, marking a continuing, although bumpy, recovery that began after the dip in the market last July. Taking a look at the national real estate picture, sales of existing homes increased a reported 3.7 percent! In reports published by the NAR chief economist, market trends indicate an improving sales pattern which is expected to continue based on the fact that sales of existing home inventory has risen in six of the past eight months! The trend is expected to continue as employment outlook is favorable coupled with home pricing affordability and historically low interest rates.
In year to date graphical sales statistics comparing median price, sales and unsold inventory, for the time period 2010 to 2011, it appears that we are in a transition market from a fast and steep decline to a relatively flat stability curve, both statewide and locally. Regarding statewide data, the positive outlook is reinforced by recent data indicating a median price of $296K in November of 2010, which represents a 21 percent rise above the February 2009 dip to $245K! According to the California Association of Realtors (CAR) it is also interesting to note that, sale prices in November were up 93 percent from the trough of $254K three years ago, which measures a whopping 19 percent above the annual average - spanning the past 39 years!
Did you know that the unsold inventory index is also a very good indicator of home sales trends because when the housing supply falls below seven months, it usually leads to price appreciation? And for the first time since November of 2010 the unsold inventory index was only 6.2 months, another positive sign that the real estate market is improving!
Locally, the overall San Diego market data is flat when comparing both the year to date as well as monthly sales data based on the following key components: a.) median sales price of $370K in April, down 2.4 % from March of 2011 b.) monthly sales volume remained unchanged at 1,875 units c.) increase in condo sales volume of only 1.1% up to 942 units sold coupled with a one-month price increase of 2.0 percent to an average price of $209K . Additionally, San Diego County distressed property sales were also relatively unchanged with a 30 percent sales ratio in 2010 versus 32 percent this year, for single family detached homes.
Lastly, according to data just released from the Institute for Luxury Home Marketing specifically for the local San Diego luxury market, now is still a great time to buy as the median priced luxury homes is selling at only $1,653,520 and 128 days on the market. In conclusion, we could be at the low point in the real estate market as strong signs of a market recovery are evident covering a broad range of key economic indicators!
