San Diego Housing Prices Heat Up
The S&P/Case-Shiller index reveals that housing prices in January posted their biggest gains since 2004. Coming off an autumn lull, San Diego County’s housing market is seeing increased price appreciation. The price index increased 0.6% in January from December, compared to a downslope of 0.1% the previous month. Based on seasonally adjusted figures, January was the highest monthly price gain (1.8%) in the 20 U.S. cities measured by S&P/Case-Shiller. The figures are considered incredibly accurate because they take into account repeat sales of identical homes.
From a seller’s perspective, San Diego took the prize for the nation’s most improved year-over-year performance. January saw a 19.4% higher average than the same month in 2013. This is an increase of 18% from December. Many of the nation’s top housing and economic experts see supply and demand staying relatively balanced in 2014. Mark Goldman, a mortgage broker and real estate lecturer at San Diego State University says, “I’m not expecting any great movements one way or another for the rest of this year, and that’s a good thing. I think a stable market is a healthier market.” Goldman also predicts that the average resale price for a home in San Diego County will go up from 3% to 3.5% this year. This is in line with the 100-year trend for U.S. housing prices.
One factor that could prevent a new housing bubble in San Diego County is affordability. Unemployment did fall in San Diego County to 7% in February of this year, from 8% a year earlier, but wages have not kept up with inflation. Mortgage payments have gone up for home buyers and the interest rates have also risen. Some analysts say that the combination of static incomes, higher home prices and rising rates means the demand is lowered. This forces some sellers to accept lower offers.
San Diego County did see a surge in inventory of homes for sale, with a 44% jump to 6,099 active listings, according to the San Diego Association of Realtors. This is still below the more typical 8,000 to 9,000 listings seen in previous years and cities such as La Jolla are experiencing an active and healthy housing market.
Thinking of buying or selling a home in the La Jolla area? As consistent Top Producers in real estate, Linda Daniels and The Daniels Group are your La Jolla housing specialists. Working with The Daniels Group will give you with the advantage of having local experts to ensure that you have a successful real estate transaction. From buying, selling and investing to financing options and more, we have the expertise and resources to help you achieve your goals. Call us today at (858) 361-5561 or email us anytime by clicking here.