Forecasts for the San Diego housing market
People looking at real estate in San Diego may have picked a good time to buy, with numerous reports indicating a rise in home prices and a decrease in the amount of time homes spend on the market. The recent positive real estate trends have caused a flurry of speculation and projections for what can be expected in the years to come in the San Diego housing market.
A recent CoreLogic Home Price Index indicated that in August, the overall index for San Diego County and the surrounding area increased by 0.8 percent over August 2011. However, excluding sales of distressed properties, the index indicated a 4.3 percent increase in August over last year.
The North County Times with a contribution from The Associated Press recently reported that an industry association in North San Diego County revealed that the median home price in August increase by 5.3 percent in August 2012 over last year, reaching $456,000. The association also indicated that the inventory has significantly decreased, down 36 percent in August when compared with August 2011.
The article said that while the gains have been hopeful and significant, the market has a long way until it gets back to the pre-recession days. Many buyers are still kept from entering the market due to stricter lending standards that prohibit them from qualifying for a loan.
The San Diego Union-Tribune recently reported that a California realtor group predicted that the housing market won't be fully "corrected" until 2017, although housing recovery will continue through to 2013. Industry professional and expert Leslie Appleton-Young estimated that sales will rise 1.3 percent next year and that the momentum observed in prices will carry through to 2013. She sees this as a result of the high demand for a limited housing supply and low inventory.
"Pent-up demand from first-time buyers will compete with investors and all-cash offers on lower-priced properties, while multiple offers and aggressive bidding will continue to be the norm in mid- to upper-price range homes," Appleton-Young said.
A recent column in local news publication La Jolla Light noted that while many people assume there is an advantage to selling real estate in the spring and summer seasons, there are numerous advantages to selling properties in the autumn season as well.
Industry professional Vicki Johnson said, "The truth is, especially in today's San Diego market, there are always ready buyers looking for homes - be they investors or newlyweds, individuals relocating after a divorce or career change, couples transitioning into retirement or looking for a vacation home to escape harsh winter weather."