San Diego is a seller's market

Recent reports of a surge in sales for residential real estate in San Diego have many excited and some indicating it is a seller's market. A recent article in local news source the North County Times cited August housing data and industry insiders who said sellers have retaken control of the housing markets, particularly in North San Diego and Southwest Riverside counties.

A recent article in the San Diego Union-Tribune cited a DataQuick report that showed August to be the busiest month for San Diego County home buying since before the market took a downturn in 2006. San Diego County recorded 3,981 residential home sales in the month of August. This was the highest recorded level of sales since June 2006, which recorded 4,533 residential home sales. According to the Union-Tribune,  DataQuick analysts said this surge in sales is in line with southern California numbers and the significant improvement can be explained by near-record investment activity, cash buyers and the historically low mortgage rates.

President of DataQuick John Walsh revealed that cash purchases accounted for one-third of all sales and maintains that he is interested to see when that begins to diminish.

"In the meantime, strong seasonal forces should be kicking in now," said Walsh. "Absent an unusual surge of demand this fall, sales will taper off over the next few months."

August 2011 saw 3,249 homes sold in San Diego County, and the median home price was $320,000. DataQuick revealed that this year, August saw home sales of 3,981 and an almost 8 percent increase in median price, which reached $345,250.

The Union-Times reported that San Diego County's single-family home market continues to shine when compared with a year ago. In August, 2,594 single-family homes were sold, which was the highest number in nearly seven years. Looking at investment, people purchasing second homes and investment properties were a considerable driver of total sales, and in August, total sales rose roughly 12 percent over July and 23 percent over last year.

The North County Times quoted Mark Goldman, an instructor at the Corky McMillin Center for Real Estate at San Diego State University, as saying, "We're in a seller's market right now. It's a wonderful thing. There's a lack of inventory; interest rates are low; people are feeling good about their futures."