Housing economists agree that the real estate market is showing signs of stabilization. Home prices depreciated over 8% on average in the past five years in San Diego county California. Yet in the last quarter of 2012, the median sales price increased 4.3%, or $15,317 to $367,500. This represents an increase of 19.7% compared to the prior year. The average listing price for San Diego homes for sale on Trulia was $578,945 for the week ending January 9, which represents an increase of 0.8%, or $4,620, compared to the prior week. The average price per square foot for San Diego CA was $280, an increase of 10.2% compared to the same period last year. Popular neighborhoods in San Diego include Mira Mesa, Rancho Bernardo, Pacific Beach, Rancho Penasquitos, Carmel Valley, and North Park.
In this week’s National Association of Realtor’s Economic Update, the research staff analyzes recently released economic indicators. Among the news releases was a bit of positive news on home construction in December:
- The Census bureau reported 954,000 starts in December, an increase of 12.1% from November.
- Single family construction, which has lagged for several years in the wake of the subprime crisis and subsequent bloat in inventory, was up 18.5% over the 12-month period ending in December.
- Permits for construction of single family units were 27.3% higher over this period, suggesting confidence among builders for the future.
- Despite the strong figures, starts remain well below the historic average and should not pose a threat to inventories as much of the building is done in niche markets. Furthermore, financing for construction has been tight in recent years, so new projects are vetted closely by builders and lenders who search out good local information. Builder confidence in local conditions is a positive indicator for inventories, sales volumes, and price trends in these markets.
There is a tangible sense of enthusiasm among real estate agents working in the San Diego market. Many are reporting an increase of activity on listings and the need for an increased inventory of homes to fulfill the needs of buyers coming into the market. Entry-level homes are selling quickly and often have multiple offers. Not all homes are being swept-up by investors. I recently discussed with an agent that the seller of an entry-level home in Rancho Bernardo selected a young family with the need to obtain a loan over an all-cash investor. Regardless of investor or primary homebuyer, this real estate broker is excited to be in real estate right now! For more information go to www.DinaRealEstate.com