Housing market improves in San Diego County
As the economy improves in the United States, the housing market has also begun to take a turn for the better. For those looking into houses for sale in San Diego, the current real estate trends have made housing in the city more desirable than ever before. Although home buying has traditionally been found to slow down during the fall months, San Diego saw a 13 percent increase from September to October of 2012. According to the San Diego Union-Tribune, house prices in September rose a noted 4.1 percent increase from the previous year.
"With six months of consistently rising home prices, it is safe to say that we are now in the midst of a recovery in the housing market," said David Blitzer, chairman of the index committee at S&P Dow Jones Indices.
In certain San Diego neighborhoods, prospective buyers are essentially competing for a limited number of houses. With fewer foreclosures and a number of underwater homeowners - those who owe more on their homes than the property is actually worth - who are unable to put their homes on the market, realtors explain that the demand is currently exceeding the supply. The number of homes that have been repossessed by the bank has dropped 25 percent in the past year and a whopping 75 percent since the peak low in July 2008. According to the Union-Tribune, approximately 500 homes were foreclosed in October 2012.
"The distress keeps declining," Norm Miller, a real estate professor at the University of San Diego, told the Union-Tribune. "We're seeing higher median prices because of that. That's good. We're going to see some modest price appreciation. But there are still a lot of underwater people who are not coming into the market."
Michael Lea, economist at San Diego State University, noted that a distressed property decline creates favorable conditions for the market to continue to improve over the coming months. Predictions show that the favorable conditions should maintain the same steady pace that has been noted this fall, according to the source.
The competition has also had unanticipated benefits to San Diego County. Prospective buyers have begun to search for a bid on houses in other neighborhoods, which generates price increases in these zip codes as well. New homes and resale homes and condominiums all increased in value as housing demand grows in the county.