Real Estate Update from September: Is the Market Turning Around??

Everyone has the economy on their minds, and for good reason. It has been a tumultuous few years and the real estate market has endured the worst effects of the recession. Recent months, however, shed positive light on the future prospects of the real estate market here in San Diego. Recent San Diego Association of Realtors (SDAR) statistics reveal a positive increase in sales prices.

A recent edition of the San Diego Daily Transcripts online show called “The Scoop” features SDAR president Donna Sanfilippo reviewing the local statistics. Among the more exciting stats that she cites are the price increases in single family homes from Sept 2011 to Sept 2012. According to SDAR statistics, there was an increase in median single family home prices by 12.5% and 14.3% for condominiums. Click here to see the full interview. It would be easy to assume that home prices are stagnant considering the state of the economy nationwide, but the statistics prove otherwise.

Another interesting stat referenced in the video is the inventory of homes for sale on the market. Donna Sanfilippo quoted a 2 month supply as opposed to the 6 month supply previously existent in the market. As a broker involved in real estate sales on a daily basis, I can attest to the lack of inventory for my buyers, especially in the under $400k price range that was mentioned in the video. Move-in ready homes in many affordable markets are selling almost immediately, in many cases on the same day it hits the market. For nearly all of my buyers recently, they’ve had to compete for homes that they would like to purchase. Often times against other buyers willing to pay cash, pay above list price, or even purchase with no contingencies.

If conditions continue to remain as they are (low rates, low inventory, etc) I can easily see this market progression to continue throughout 2013. We’ll keep an eye on these statistics for you. In the meantime, don’t hesitate to get in touch if you’re looking to jump into the real estate market or want to discuss these recent reports in detail.