Uneven results for California's housing market
People looking at homes for sale in San Diego may have chosen one of the best spots to look throughout the state. While San Diego may be lacking in its inventory of available homes for sale, the city is experiencing one of the best recoveries in the state of California. A recent release from local real estate expert Daniel Torelli detailed the disparity in housing market health being found in the state.
"In the Golden State, the housing market isn't exactly golden. After all, this is the same state that saw nearly half of its existing home sales handled through foreclosures at the beginning of 2011!" Torelli claims in his statement. "Luckily, though, California's housing market is starting to show some signs of promise. However, those signs are not popping up evenly."
How does San Diego add up?
San Diego is at the top of the list for improving markets in California. The source revealed that the closer a home is to the beachfront, the easier it is to sell, which is notably contributing to San Diego's marked recovery. In part due to San Diego's low - and falling - inventory and partially due to San Diego's decrease in its unemployment rate, demand for homes in this city is particularly high. The source revealed that San Diego's unemployment rate has decreased by 2 percent since 2010.
The most recent Standard & Poor's/Case-Shiller Home Price Index showed that home prices in the month of September rose 4.1 percent over September 2011. Real estate journalist Lily Leung reported in the San Diego Union-Tribune that this gain in home prices was the largest year-over-year increase observed for the county in any month over the last two years. Leung detailed that home buying has been particularly strong in the county, with home sales rising nearly 13 percent from September to October.
The main - and some would say only - problem with the San Diego housing market is the declining inventory, which sources reveal has decreased by 35 percent in the last year alone. This creates an environment where home sellers are happy, as there is less competition for buyers and easier to sell quickly. However, those looking to purchase a new home or enter the real estate market for the first time may be unhappy with the higher prices and reduced variety.