Springtime in San Diego Yields "Best in Region" Report on Median Home Price Increase
The Median March housing market numbers from MDA DataQuick came out and the year over year ( March 2009-March 2010 ) gain in the median home prices in San Diego county rose 15.8% and that represents the best showing in the region. The Southern California Region is made up of Los Angeles County, Orange County,Riverside County, San Bernadino County, Ventura County and San Diego County.
The median price of homes in San Diego county is a statistical measure where half of the homes sold for less and half of the homes sold for more.
The number of sales in San Diego also increased 6.9% over this year period from the previous year with a significant drop in the number of foreclosures.
That was the good news. Obviously there is a more to the story with consumers and real estate professionals wanting to know what the prognostications are for the months ahead.
Since it is not clear what the end of the federal stimulus will mean to new and move up Buyers who have benefited from the Federal tax credit and coupled with other factors like local employment and generally higher interest rates, it is expected that there will be a slow down in the housing market, more especially in the entry level market.
That is not the whole picture however. It was also reported that there was an increase in the percentage of jumbo loans from 14.8% to 15.7 % of the total loans acquired for purchasing. That is also a bit of good news for higher priced markets like San Diego.
Increases in Median Home prices is NOT the same as actual home prices increasing. Individual property values have had some increase in select markets county wide however. The steady month after month median price increases best reflects the blend of properties in any market and also that the San Diego housing market prices are clearly stabilizing. But it must also be said that this does not mean that home values across the board have or will increase any time soon.
The general economic indicators seem to reflect a starting recovering economy but unemployment remains very high and it will most likely take years for it to take on more normal characteristics. San Diego is employment picture is slowly improving. But the unemplyment numbers along with rising interest rates is expected to keep the markets from reaching their full potential any time soon. Economists and market specialists tend to agree that it may be a much as four or five years down the road before home values to see any real or significant rise in values.
Housing markets have always been and always will be fluctuating but conditions are improving at this time and I remain hopeful they will continue.