San Diego County's economy improving
People looking at real estate in San Diego can find restored confidence in the market with a recent report indicating economic improvement. The University of San Diego's Burnham-Moores Center for Real Estate recently released its Index of Leading Economic Indicators for the month of October, indicating that San Diego County's value increased by 0.3 percent to 122.6.
The index measures six economic indicators for San Diego County to track monthly changes in the economic state: changes in new building permits, unemployment insurance, stock prices of local companies, local consumer confidence, help wanted advertising and economic indicators from the national economy.
According to a recent article in the Daily Transcript, three of the metrics analyzed this month - building permits, consumer confidence and the outlook for the national economy - increased, but only moderately, during September. The remaining three components of the index remained virtually the same. The source additionally indicated that while the increase is modest, October marks the 10th month out of the last 12 months that an increase was observed.
The index indicated that residential units that were authorized by building permits are the main force for keeping the index on an incline. This portion of the index has increased for the last eight months in a row, and in each of the last six months, residential units have been the top gainer in the index, reported the Daily Transcript. The source additionally offered a comparison: There were 157 single-family units and 345 multifamily units authorized for construction in October 2012, which is quite notably different than the 111 single-family and 62 multifamily units authorized in October 2011.
Now is a good time to buy in most major markets across the country, including San Diego. Real estate journalist Lily Leung reported in the San Diego Union-Tribune that while homebuying typically slows down in the fall, San Diego County saw sales rise by nearly 13 percent from September to October of this year. Leung additionally indicated a persistent demand, especially coming from first-time home buyers and investors.
Leung cited the most recent Standard & Poor's/Case Shiller Home Price Index, which covered data from September and indicated a 4.1 percent rise in home prices over last year. This is the largest yearly gain San Diego has seen in just about two years.