With rising home prices and low inventory levels, San Diego has been a tough community to crack for home buyers wanting to settle down in this paradise. However, it seems some reprieve is on the way as Irvine-based real estate analytics company CoreLogic recently reported a slowing in home price appreciation rate that could assist home buyers who have previously been priced out by the market’s swiftly gaining price trends.
CoreLogic reports home values in San Diego increased just 3.1 percent in May from one year before, coming to a median value of $459,000. This is the slowest rate of increase seen since June 2012, when the pace was a tepid 1.7 percent and the market was struggling to find its feet following the housing crash and recession.
Shortly following that low point home prices began to shoot up to rates that were unsustainable thanks to a high concentration of fix-and-flip foreclosure resales. One of the highest appreciation rates during that time was seen in June 2013 when home prices were up 24.1 percent.
Investor and foreclosure flipping activity has come down considerably since then, especially as the market has returned to somewhat normal activity. In May, home sales rose 3.5 percent yearly to 3,825, however they represented a decline from April’s figure of 4,049.
San Diego Home Inventory Slowly Creeps Up
Home buyers in San Diego have been anxiously waiting for the inventory of available homes to increase so as to ease the tight buying conditions. According to Altos Research, a California-based real estate analytics company, inventory has yet to increase to similar levels seen last year, but it does look to be on a gaining trend. There are currently about 1,531 properties on the market in San Diego. At last year’s peak there were about 2,100 properties available.
With a limited inventory, demand is still high but has come down over the last few weeks. Altos’ unique indicator, the Market Action Index, uses a scale with 30 as a neutral point to indicate whether buyers or sellers are in favor. San Diego’s MAI recently decreased from about 44 to 42.52, which is still well into seller-favored territory but is edging closer to the neutral value.
Despite the decrease, there is still a very strong demand for San Diego homes and they are flying off the shelves. Altos reports an average days on market of 65 days and a decreasing trend means that buyers are acting faster and faster to secure their ideal homes.
If you are interested in learning more about San Diego luxury homes, please contact our team of knowledgable real estate agents today. We’d love to help you secure the perfect home in this stunning community.
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