July San Diego Housing Market Update

Home sales continue to remain strong as buyers and investors compete for available San Diego real estate inventory.

The number of single family homes sold in June, as compared May 2012, as well as condos/townhomes, remained unchanged according to the San Diego Association of Realtors.

More profound however are the 2012 June sale numbers compare to 2011 June sales.  Single family home sales rose dramatically 21.2% and condos rose 3.2%.  This is encouraging news for the San Diego real estate market.  This rise in sales represents more confidence amongst buyers and is also reflective of a smaller inventory throughout San Diego County. 

Comparing pricing from June 2012 to May 2012 single family homes were up 2.6% and condo’s fell to 2.2%. 

Year to year, June 2012 to June 2011, single family homes rose 3.3% while condos rose 2.7%.

Low inventory continues to be a key factor in increased sales and pricing.  According to the San Diego Association of Realtors, San Diego’s inventory is at a 2 ½ month supply. A normal, healthy supply is 6 months.  With the numbers dipping below the 6 month mark, many communities throughout San Diego, can now be considered to be in a sellers market.  Most homes priced below $500K are receiving multiple offers and sell for higher than their list price.

 Much of the low inventory “crisis” can be contributed to high demand, driven by historically low interest rates, a lack of confidence in move up seller’s and slower foreclosure times on behalf of many major banks.

One thing is for certain, there really has not been a better time to reach for a piece of the American dream to own your own home.  Low interest rates make it more affordable to own, rather than rent in many situations.  However, put on some comfortable shoes and get ready to work hard as you’ll find yourself competing with thousands of other San Diegan’s and often in bidding wars with 7 or 8 people, sometimes the upward of 30 other offers, for “killer” deals.  Hang in there though as it will be worth it!

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