As the seasons transition from summer to fall, many sentiments among home owners throughout the country may be somewhat dismayed at the prospect of colder weather and getting back to the hustle and bustle of school and fall sports. For Southern California home owners however, the beautiful weather will maintain, keeping spirits high.
Confidence has been gaining for market consumers throughout the U.S., which has given many home buyers the go-ahead they need to make their moves on the housing market. In San Diego in particular, lower prices and a higher inventory are creating particularly ideal conditions for home buyers to get their feet wet as well.
According the the most recent consumer confidence index conducted by the National Association of REALTORS®, confidence has been gaining in the national economy and real estate market, giving home buyers the boost they may need in order to get sales rolling. In August, the index hit 92.4, which is the highest level the index has risen to in nearly seven years. The last time the index was at a comparable level was in October 2007, just before the financial crisis hit.
At that time, spirits were high due to a rather low unemployment rate of 4.7 percent. Today, that rate has grown slightly to 6.1 percent, however Americans have grown more confident of the real estate market as its own entity, likely thanks to a growing economy and a very strong stock market. Despite the growth in confidence, the index is still just shy of the 100 mark, which is a level at which at least half of Americans say that the economy is generally moving in the right direction.
San Diego Home Market Conditions Spark Its Own Confidence
While the rest of the country continues to build a sense of trust back in the American Dream, San Diego home buyers only have to look to current market conditions for a marked increase in confidence. According to Altos Research, a California-based real estate analytics company, prices in San Diego had plateaued for a period, but have since dropped off just slightly. This break in the local home price offers an opportune time for home buyers to get active on a market that has been extremely competitive over the last year.
As of September 5, the median single-family home value in San Diego came in at $643,842. Prices had been gaining earlier in the year, from March to about June, then leveled off at a high point until just recently when they took a slight turn downward.
Another boon to the home buyers in San Diego is a continuing trend that is seeing more and more homes coming to the local market. After dipping earlier in the year, the inventory of available homes in San Diego has been on the rise since turning the corner in early March. As of September 5, Altos reports that there are about 2,007 properties on the market in San Diego.
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