Just in case you haven’t heard, owning a peace of the American dream has never looked better.  Here in San Diego, and all throughout the California, real estate is at historic lows with very, VERY attractive interest rates. 

The chart below, provided by California Association of Realtors,  tracks median home prices in California since 2010 to current and pairs prices side by side with interest rates.  As you can see, interest rates as well as statewide median home prices have never been lower. 

If you are on the fence wondering if you should purchase a home for the first time or a second investment property, give me a ring and let’s chat over a cup of coffee.  While most of the time it makes sense to purchase, verses renting, there are some situations when it does not.  I promise to always give you sound, honest advise that is best for you! 

Home sales continue to remain strong and fiercely competitive as inventory remains low and buyer demand high in San Diego’s real estate market.

Compared to June 2012, July sales for single family homes were down 5.7%.  Condo’s were also down 5.1% compared to June according to the San Diego Association of Realtors.  The main reason for the decrease in sales is the limited number of properties for sale; the quickly becoming “old” inventory crisis I’ve been talking about for most of the selling season. 

Interestingly, but not surprisingly, prices increased in July.  Comparing pricing from June 2012 to July 2012 single family homes were up 1.3% and condo’s rose dramatically to 4.4%.  This increase in pricing is following a several month trend of slowly rising prices in San Diego’s real estate market.  If the inventory is low and the demand high, which it has been in San Diego since March, prices will rise. 

Comparing year to year price trends in San Diego, July 2012 to June 2011 saw an increase of 5.3% for single family homes in July 2012 and condo’s rose a dramatic 14.5%.  The average median sales price for a single family home in San Diego was $392,380 for July 2012.  In July of 2011 it was $375,330…quite the increase!

The California Association of Realtors (C.A.R.) also released a report last week which further addresses the inventory crisis we are experiencing in California’s real estate market.  C.A.R. found that the number of people that can qualify for a loan on a median priced home dropped to 51% in the second quarter of this year.  The first quarter hosted a heavier number of 56%. 

Also from a statewide perspective, C.A.R. found real estate sales posted strong gains statewide with the sale prices showing a positive year-over-year increase for the fourth straight month in a row and the median price approaching a “near-four-year-high”.  This is none-the-less, very encouraging news.

Part of the demand for housing is being driven by historically low interest rates.  July, for example, saw an average for a 30-year fixed mortgage interest rate of 3.55 %.  This was actually a drop from 3.68 % in July and 4.55 % in July of 2011. 

If you are thinking of buying or selling your home, there truly has not been a better time in years to do so.  Pent up demand from buyers is driving pricing upwards.  Low interest rates can make owning a home more affordable than renting in many cases.  One thing is for certain, preparation and education is key, no matter what side of the fence you are on.  Start early, and take advantage of our very dynamic real estate market in San Diego!

Literally there has not been a better time, since 2007, to sell your San Diego home.  With a historically low amount of available homes for sale, coupled with a strong healthy demand, you can expect to net top dollar for your hard earned investment.  Most people have not heard the term seller’s market for quite some time.  However, most neighborhoods throughout San Diego, can be considered to be in a seller’s market currently.

Most bubble watchers define a seller’s as any market which has an absorption rate below six. Six month’s exactly is considered a balanced market as there are a relatively equal number of homes for sale for available buyers.  And over six, represents a buyer’s market. 

It may surprise many San Diegan’s to know that in many of our neighborhoods we are seeing a return to a sellers market; a relatively low absorption rate of below six. That is to say, there are more buyers looking to buy a home, than homes available. As a result, most areas are seeing slight price increases and 9 times out of 10, multiple offers. The more interest your home generates, the better negotiating position you will be in to net top dollar for your hard earned asset.

The chart below illustrates the demand for housing throughout California by analyzing the percentage of properties with multiple offers. 

Percent of Properties with Multiple Offers in California

 For more information on what types of prices, offers and interest your property might generate email me today.  I will sit down with you and provide you with a detailed market summary of your home as it compares to your neighbors to help you better understand what value you can expect. 

Ever wondered how San Diego’s Real Estate Market stacks up to other California cities?  Aside from the near perfect year round weather, beautiful southern California landscape and small town feel, our real estate prices are very down to earth.  Take a look at how we compare……

This median sales price chart is provided by the California Association of Realtors. If you are curious as to how your home value stacks up, email me today and I’ll be happy to provide you with a free comparative market analysis of your home!

According to a recent report on CNNMoney.com, prices of residential homes in the US have hit bottom and are now on the rise.   Nationally, values gained 0.2% year-over-year, to top at a median sales price of $149,300 for the second quarter according to Zillow.com.  June marks the fourth consecutive month prices have increased.  

Recovery Trend in Real Estate

It is important to note that although widely popular, Zillow calculates their data a bit differently.   Foreclosed home sales, as well as bank owned sales, are not calculated in Zillow’s data.  However short sales are.  Therefore to better understand residential housing markets price trends I recommend looking at other sources as well, such as the very reliable, the S&P/Case-Shiller Home Price Indices.

The S&P/Case-Shiller Home Price Indices, which is the leading measure for our national residential housing market also reported home prices grew by 2.2% in May over April for both the 10 and 20 City Composite they monitor.  This is pretty exciting news for homeowners, prospective buyers and investors in San Diego as well as throughout the US.

“With May’s data, we saw a continuing trend of rising home prices for the spring,” says David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. “On a monthly basis, all 20 cities and both Composites posted positive returns and 17 of those cities saw those rates of change increase compared to what was observed for April. Seventeen of the 20 cities and both Composites also saw improved annual rates of return. We have observed two consecutive months of increasing home prices and overall improvements in monthly and annual returns; however, we need to remember that spring and early summer are seasonally strong buying months so this trend must continue throughout the summer and into the fall.”

David Blitzer goes on to point out, “June data for existing home sales, new home sales, housing starts and mortgage default rates were a bit mixed, but all are better than their year-ago levels. The housing market seems to be stabilizing, but we are definitely in a wait-and-see mode for the next few months.”

However you monitor the real estate housing market recovery, one thing is for certain- positive news such as this is a welcome change.  If you are currently looking to purchase either an investment property and/or residential property here in San Diego, you most certainly have felt the fierce competition, the lack of available homes, and perhaps even participated in a bidding war yourself.  Let’s face it, with incredibly low interest rates, rising rent costs, and historically low prices, sometimes buying the perfect home does mean you have to budge a bit.  And San Diego is definitely beginning to see its fair share of real estate pricing gains, especially our most desirable neighborhoods such as Scripps Ranch, Rancho Bernardo, Hillcrest, University Heights and the College area.

Even though this is good news, and believe me very good news from where I sit, I caution all investors and home buyers in San Diego to exercise caution and remember do not get in over your head.  During a bidding war it is very easy to get emotionally involved and bid more than you truly feel comfortable doing.  It’s an emotional, complex and competitive market out there in San Diego.  That is why I sit down with all my clients at the beginning of their search to better understand their goals.  A good Realtor will keep you focused even when the emotions start to get high and the bidding war begins.

Research, preparation, education and a strong real estate professional on your side is the key to investing in San Diego’s real estate market.  San Diego is a beautiful city, with many wonderful attributes and if you play your cards right, not only will you be happy for years to come, but just might make the smartest investment of your life time.