Sale prices in San Diego receive a boost from low mortgage rates and inventory
Good news keeps rolling in for people looking at real estate in San Diego. A recent article in The Press-Enterprise cited DataQuick numbers which revealed that the lack of home supply in southern California have been spurring a rise median home prices.
"The latest stats suggest unbelievably low mortgage rates and modestly higher consumer confidence continue to put pressure on a supply-starved housing market," said John Walsh, DataQuick president. "We can't stress enough, though, that the median sale price and other price measures reflect more than just rising home values."
Another article from the Home Buying Institute took a closer look at the DataQuick findings, noting that this report shows even stronger gains than the recent Standard & Poor's Case-Shiller Home Price Index. When comparing September 2012 with September 2011, the DataQuick analysis showed the median sale price has risen from $315,000 to $350,000, which is an 11.1 percent increase. Home sales also increased by 4.2 percent, from 3,084 sales in the San Diego metro area recorded in September 2011 and 3,214 sales recorded in September 2012.
The most expensive areas around San Diego County based on median sale price for new and existing homes and condos during September 2012 were revealed to be Central San Diego, East County, North County Inland, North County Coastal and South County.
The source additionally revealed that mortgage rates remain at the second lowest average in the 41 years of Freddie Mac's weekly market survey. As of October 11, 2012 the average 30-year fixed rate mortgage was at 3.39 percent. The average 15-year fixed rate mortgage was at 2.70 percent.
"In the past, low rates alone have not been enough to spur the housing market," journalist Brandon Cornett reported in his recent article for the Home Buying Institute. "But they are now starting to overlap another trend in the San Diego area - job growth."
San Diego's unemployment rate decreased from 10.3 percent in August 2011 to 9 percent in August 2012.
The source predicted that the golden combination of low mortgage rates, an ever-shrinking supply of available homes for sale and the moderate improvements being observed within the economy will all contribute to a boost in home prices for the San Diego area well into the first half of 2013.