Houses for Sale in San Diego – The San Diego real estate market ranked well and earned top honors in May on Zillow’s home value index for both home price increases and median home price. San Diego was second only to Virginia Beach in terms of home price increases for metro areas. Among the major metropolitan areas, the San Diego real estate market ranked number one for home price increases. At an average home price of $375,400, San Diego placed ninth on the highest median home price index.
California home prices have been faring better than the average home prices in major cities throughout the nation. San Diego home prices rose 7 percent in May from the year prior, earning the San Diego real estate market Zillow’s number one slot for home price increases among major metropolitan areas. The San Francisco real estate market ranked second with a 5.9 percent increase. Los Angeles was third with home prices rising 5.3 percent. San Jose and Santa Barbara tied for fourth place with home price increases of 4.7 percent. California cities represented six of the top ten cities for improved home values.
California cities also dominated the index for the highest median home price. Nine of the top ten cities are in California. San Jose topped the list with an average home price of $584,000. San Francisco placed second with a median home price of $526,300. Santa Cruz came in third with an average home price of $507,000, and Santa Barbara earned fourth place with a median home price of $450,400. The San Diego real estate market ranked ninth with an average home price of $375,400.
However, Zillow’s average price in May of $375,400 for a home in San Diego was quite a bit higher than MDA DataQuick’s figure of $340,000. What accounts for the $35,000 difference in home value? Rather than only including prices from homes in San Diego which have sold, Zillow also includes pending sales and homes in San Diego which are not listed for sale. Furthermore, Zillow’s home value estimates, also known as Zestimates, self-admittedly have a median error rate of 9.1 percent for homes in the San Diego real estate market. It comes as no great surprise then to deduce if their figures for individual San Diego homes are inflated, then their number for the median price of a home in San Diego will be inflated as well.
The good news however, is even though Zillow’s figures and estimates may not be as realistic or accurate as the numbers reported by MDA DataQuick or Standard & Poor’s/ Case Schiller Home Price Indices all three have reported price increases for homes in San Diego County. USD Economist Alan Gin also reported a 0.2 percent gain in his latest compilation of San Diego’s leading economic indicators. Although the gain is modest, it is the 14th consecutive increase for the monthly San Diego index. Gin expects the San Diego region to continue to experience slow to moderate growth.
An increase in new home construction is another sign the San Diego housing market is gaining strength. The number of building permits authorized for the construction of new San Diego homes rose just over 1 percent in May when compared to the previous month. Four hundred thirty-five housing permits were issued in May, which is the highest number since March 2009. According to the Construction Industry Research Board, less than half of the permits were for single family homes, and over half of the new home permits were for multi-family housing units in San Diego County.
With record low interest rates, the $10,000 California new home tax credit, and increasing but still low home prices, now is an excellent time to enter the San Diego real estate market. 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 houses for sale in San Diego designed specifically for you based upon the criteria you require for your San Diego home. With 25 years of experience in the San Diego real estate market, Russ has the experience, community knowledge, and negotiating skills to help you find and purchase the perfect San Diego home.