San Diego California Housing Market

May has been a good month for stabilizing Southern California housing markets. In San Diego, home prices continued to climb but were at less than half the rate from one year ago when the county saw a frenzied buying period characterized by outrageous price gains.

This year, things are less noisy and a lot more manageable as last month the median price for a home sold in San Diego was recorded to be $44o,000, according to Irvine-based real estate tracker DataQuick. This value is up 8.2 percent from May 2013 and is a seven-year-high for San Diego sold home prices.

Despite this impressive gain, appreciation in May 2014 still pales in comparison to the gains seen from May 2012 to May 2013 when home prices in San Diego rose 21.3 percent. Currently, the county is almost to its lowest year-over-year value in home appreciation since August 2012 when gains were down to 7.9 percent.

In spite of what may seem like a stalling point in the market, the current rates of appreciation are more in-line with the steady market growth that San Diego needs right now. One year ago, when DataQuick recorded the 21.3 percent increase in home prices, San Diego was at the height of its recovery period and gains of that magnitude were necessary to return just to normal conditions. Now the market is one more year in recovery and closer to stabilization.

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“The sort of price spikes we saw this time last year – annual gains of 20 percent or more – are less likely today given affordability constraints, higher inventory and the drop-off in investor purchases,” DataQuick analyst Andrew LePage said in a statement.

Slow San Diego Sales Mark Equilibrium in Market

While prices continue to hike up, sales of homes in San Diego county have dampened quite a bit. May recorded 3,654 transactions that closed, which is 10 fewer than those recorded in April. As spring transitions into summer, the market typically picks up as it is traditionally considered peak buying season, however this year continues to sputter along to any kind of start.

“This year just isn’t rolling as fast, things are leveling off,” Mark Goldman, a loan officer and real-estate lecturer at San Diego State University. “We’re entering into a period of a stable market that’s experiencing some sort of equilibrium. there are no particular forces that are creating incentives for seller to sell or buyers to buy.”

One good thing to come out of this lull in the market is that interest rates on mortgages continue to remain low. The average interest rate recorded in May for a 30-year fixed-rate mortgage was 4.19 percent. With 7,000 active listings cited by the San Diego Association of REALTORS®, there is sure to be something that will lure buyers and sellers back to the market in this wonderful community soon.

San Diego is one of the most beautiful communities in Southern California. If you are in need of a real estate agent to help you find the perfect luxury property in San Diego, please give our team a call today.

Check out these San Diego homes priced from $3.5 million to $4.5 million

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    Home size: 7,262 sq ft
    Lot size: 31,798 sqft
  2. 5 beds, 6 baths
    Home size: 7,262 sq ft
    Lot size: 31,798 sqft
  3. 5 beds, 7 baths
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  4. 4 beds, 7 baths
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  5. 3 beds, 3 baths
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See all City of San Diego Luxury Homes For Sale.
(all data current as of 11/20/2017)

Listing information deemed reliable but not guaranteed. Read full disclaimer.