Houses for Sale in San Diego – The San Diego real estate market continues to show signs of stabilization as San Diego home prices continue to rise. San Diego home prices have improved for 11 consecutive months according to the May 25, 2010 press release of Standard & Poor’s/Case-Schiller Home Price Indices. The San Diego real estate market was the only city among 20 major metropolitan areas to show an increase in home values from January to February with an increase of 0.6 percent. From February to March, of the seven real estate markets which showed improved home values, San Diego ranked second along with San Francisco with a 1.5 percent rise in home values. Over the one year period from March 2009 to March 2010, San Diego and San Francisco were the only two cities in which home values increased by double digits. San Francisco home prices increased by 16.2 percent, and the value of homes in San Diego rose by 10.8 percent.
MDA DataQuick reported 1,212 San Diego foreclosures in April, which is the highest level since last July and an increase of 6.6 percent from March. Although the number of foreclosures reached a record high, the number of defaults in San Diego County dropped last month to the lowest level since January. Since filing a notice of default is the first step in the foreclosure process, the decline in the number of default notices indicates delinquencies have stopped growing. During April 2,105 default notices were filed, down from 2,263 in March and 3,371 in April 2009.
The local inventory level of homes for sale in San Diego rose from 1.7 months during May 2009 to 4.8 months as of May 24, 2010 according to the San Diego Association of Realtors. These figures were determined based upon both active and pending listing counts. Although more homes have been listed for sale in San Diego, the National Association of Realtors reported San Diego as the only one of 20 major metropolitan areas to show a year over year decrease in home sales with a decline of 6.9 percent in April. However, San Diego was the only California city included, and the decline in home sales can likely be attributed to San Diego homebuyers postponing their closing dates until after May 1st in order to claim the $10,000 California state tax credit.
The issuance of more building permits for new San Diego homes is another positive indicator of growth and stability in the San Diego housing market. The number of building permits increased from 287 in March to 318 in April. The year to date total for 2009 and 2010 also reflect growth with figures of 1,114 and 1,148, respectively. It is projected the population growth of San Diego will begin to outpace the construction of new San Diego homes, which will lead a housing shortage. When demand for San Diego homes exceeds the supply, San Diego home prices will rise even further.
Speculation continues on whether or not the San Diego real estate market is at or near the bottom. Some say we have already reached the bottom. Regardless of your stance on where the San Diego housing market stands, it is clear San Diego home prices have been improving for almost a full year. Growing consumer confidence and the desirability of living in San Diego may have already provided stability for the San Diego real estate market. We when start to look back, we’ll know for sure where the bottom was. In the meantime, we can watch the signs and hopefully not miss the boat.
With low interest rates and home prices, affordability for buying houses for sale in San Diego has never been better. If you are thinking of entering the San Diego real estate market and purchasing a San Diego home, this is an excellent time to do so. If you purchase a new home for sale in San Diego, as opposed to a resale, you may be able to take advantage of the $10,000 California state tax credit. Begin your search of houses for sale in San Diego today or contact San Diego Realtor and Broker Russ Petrone of Petrone Properties at 858-259-1000 to have a customized search of the homes for sale in San Diego designed specifically for you based upon the criteria you require for your San Diego home.