Already halfway through 2013, there seems to be both positive and negative news for San Diego’s real estate market. Overall, the price for homes bought in San Diego averages over $400,000, the highest since the peak of the housing market boom in 2008.
While there are a few factors contributing to the steady increase in home prices, one of the most evident is the increased competition of prospective homebuyers. More homebuyers are entering the market as it rebounds, but have minimal inventory to select from. This increased competition over the past 10 months has helped drive home prices up by about 24% when compared to June of last year.
So far this year, a little less than 10% of the homes sold in San Diego were foreclosures. The 10% foreclosed property rate however, is a substantial reduction from 2009 when the amount of foreclosed homes on the market reached a staggering 55%. If you are thinking about purchasing a foreclosed home, click here and learn more about the home inspection process and what to expect.
Although here at La Jolla Blue Book, we may be partial to the north and south coastal neighborhoods of La Jolla, industry statistics show that some of the fastest growing housing markets in the San Diego County include the neighborhoods of Golden Hill near downtown San Diego and Borrego Springs and Pine Valley, both about an hour from the coast. Most of the homes purchased in these areas were single family homes whose sales are projected to help in putting the local real estate market back on track for a prosperous future.
With this positive outlook, the only thing that may dampen the increase of home prices is the continued rising mortgage rates. After experiencing a historic low, mortgage rates have jumped the past month and are currently at the highest they have been in two years, leaving new homebuyers hesitant about entering the real estate market.
Although some negative news, it seems that the San Diego real estate market seems to be on the up and we can expect to see continued growth in the future. What are your thoughts?