A few weeks ago, the National Association of REALTORS® reported an uptick in national home sales and a decrease in distressed home sales. Recently the California Association of REALTORS® responded with their own report on conditions throughout California, indicating that things are looking better for the state as equity sales are up and distressed properties are down.
The report, released on November 25, indicated pending home sales in the state of California shot up in October by 2 percent. September reported a revised index of 102.6, while October jumped up to 104.6. This is still slightly below the pending home sales index of October 2013, a time when distressed homes and investor activity were a much greater factor on the market. October 2013 saw an index of 105.2.
Along with pending home sales, the share of equity home sales also saw an increase according to CAR. Equity sales made up 91.1 percent of all sales in October, which was ahead of the 90.9 percent recorded in September. After heavy investor activity due to the sheer amount of distressed homes on the market, equity home sales have been on the rise, making up more than 80 percent of all home sales in California since July 2013.
Distressed homes are continually becoming less of a factor for the California real estate market. Distressed properties dipped across the state from 9.1 percent in September to 8.9 percent in October. On the local level, San Diego has an even lower percentage of distressed properties at 5 percent. The county has remained virtually unchanged at this value for quite some time.
San Diego County is among those with the lowest percentages of distressed home sales. Among the leaders are San Mateo, which had 1 percent distressed properties, as well as Santa Clara and Contra Costa Counties with 2 percent.
San Diego Real Estate Update
The San Diego market seems intent on remaining strong and hopefully spurring a few more home sales in the coming months with a decrease in the median home value along with a strong demand, according to Altos Research, a California-based real estate analytics company.
Altos reports a decreasing median single-family home value in San Diego. The current value is $617,073, which is a decrease from this year’s high value of about $651,000 seen back in late summer. With the decrease in home values, home buyers are seeing an opportune time to get active on the market.
Home demand is also high in San Diego, which indicates that there are still many buyers out there wanting to get into this beautiful community. Altos measures buyer demand versus seller supply through a unique value known as the Market Action Index, which uses 30 as its neutral zone. The current MAI is well above neutral at 41.85, which indicates that there are many more buyers than available homes on the market.
Inventory has continually been a factor in San Diego, as well as across the country. Altos reports there are currently about 2,041 homes on the market in San Diego.
If you are interested in luxury property in San Diego, please give our team a call today.