San Diego home prices rise but remain lower than national trend
Recent reports from DataQuick have revealed that both home sales and median home price in San Diego have been on the rise. Real estate in San Diego has shown considerable improvement, with the median home price noted as $345,250 in August 2012, a four-year high for San Diego County. The DataQuick August figures showed sales at a six-year high, reaching 3,981. However, some have noted this improvement is not on par with a country-wide recovery.
An industry professional who writes under the name Mr. Nergarden recently released a series of comments about San Diego's real estate market, noting that it is not joining the national housing recovery as fully as it should. Nergarden believes the San Diego market conditions are favorable to home buyers, and that recovery will be propelled in part by people interested in San Diego vacation rentals.
Nergarden noted that San Diego County is the second most populated county in the state of California, with more than 3 million people residing within county lines. San Diego is known for its miles of coastline and warm, sunny climate, making it an incredibly popular site for vacation homes.
A recent article in the San Diego Union-Tribune stated investor and vacation-home buyer activity is now near the peak level for San Diego County, and in the past this presented challenges to other consumers. In August, nearly 28 percent of all homes sold were purchased by absentee buyers. An absentee buyer is one who confirms the property tax bill is to be sent to a different address at the time the purchase is finalized. The highest rate of absentee buying that San Diego County has observed is 30.1 percent, which occurred earlier this year, in February.
Since San Diego is located in such a prime spot along the coast and in an ideal climate, Nergarden noted that it is a major tourist destination. This contributes to the high prices for coastal properties that were observed as early as the real estate boom in the first couple years of the century. Nergarden mentions that these home prices are higher than average for the rest of the United States.
Nergarden mentioned that due to numbers and data from both LoanSafe.org and Standard and Poor's Case-Shiller Index, many industry experts are forecasting that "the real estate market in San Diego has bottomed out and will begin a new general upward trend."