The Current State of the San Diego Real Estate Market

by Admin on October 25, 2010

The Current State of San Diego Real Estate Market In a late October online paper of the San Diego Union Tribune, there was an article about the current state of the San Diego Real Estate Market. In summary, September 2010 prices are up 1.7% from a year ago, but down 1.9% from August 2010. What this means is that prices are up from the year to year median average, but there was actually a decline in the median average from August 2010 to September 2010. Why is this happening? You are getting a cool down in the median prices from May 2010 because of the end of the federal tax credits. The May 2010 San Diego County median price average was $340,000. September’s median average price was $330,500. In a normal real estate sales cycle, the summer months of June and July have the highest sales as homeowners are preparing to purchase a home before schools start in the fall. We didn’t see it this summer because the buyers that normally would have bought chose to buy in April and May so they could qualify for the federal tax credit. What does it mean for the future? I feel that prices will remain stagnant over the next 2 years with a possible slight dip. Number 1, I don’t see the job market drastically improving. Number 2, there is still a lot of shadow inventory being held by the banks of distressed sales. Until the market cycles through most of the distressed sales, I don’t see any major price increases for the next 2 years. My opinion is that it is a great time to buy. The trouble is qualifying for financing! Financing issues are keeping people out of the market who want to buy. If you can qualify for financing, there might not be a better time to buy than 4th Quarter 2010 or 1st Quarter 2011. To read the full article I’m referencing, click here. J. Rob Handley Atlas International Keller Williams La Jolla

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