San Diego home sale prices rise
A recent report released by the San Diego-based real estate analytics firm DataQuick revealed that July sales in the Southern California housing market increased by 14 percent compared with last year. It also revealed that the median sales price for this area is the highest it's been in almost four years. An article in the Contra Costa Times covered the major findings of the DataQuick report and stated that July marked the seventh month in a row of year-over-year sales increases. People looking at real estate in San Diego will want to take note of this trend.
DataQuick's findings covered the counties of Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange.
"We think there is evidence there has been some genuine price appreciation in markets where inventory is tight and demand is strong,” said DataQuick analyst Andrew LePage to the news source. "We've been in the early stages of a recovery for a while, but it's not a robust recovery by any means."
DataQuick indicated that the Southern California price spikes can be explained in part by increased sales activity for houses on the high end of the market and by people moving up to pricier homes, according to the San Diego Union-Tribune.
The report further explained the spikes, stating, "Greater demand, partially triggered by historically low mortgage rates, and a thinner inventory of homes for sale help explain recent gains in the median price."
The Union-Tribune detailed that even though mortgage rates rose slightly in early August, they remain historically low, with a 30-year fixed rate of 3.59 percent and a 15-year fixed rate of 2.84 percent as of mid-month. The recent housing inventory dips for San Diego County not only support the reports of a strong buyer's market as people snatch up homes for sale in San Diego, but they provide evidence of the increasing demand to which DataQuick referred.
John Walsh, president of the analytics firm, speculates that if trends continue, the number of homes for sale should increase as construction surges to meet the high demand, according a statement quoted by the Union-Tribune. Furthermore, if this is the case, more homeowners may put their homes on the market in order to take advantage of increasing prices.