San Diego Real Estate Market Statistics for August 2015
Real estate in the San Diego area continues to soar with the average price per square foot now at $359. This is an increase of 4.7% year over year. Prices are now at their highest in two years. Southern California real estate experts have been saying that these steady increases are due to savvy investors who see the value in investing in both residential and commercial property in the area.
According to some experts, investors are expected to exit the market, and clear the way for traditional home buyers. This is being viewed as a healthy sign for Southern Cal real estate markets. Especially of note are millennials, who are not only looking for a comfortable home for their families, but also the opportunity to invest in a profitable field.
The median home price in San Diego County is now at $488,000 and this is a jump of 4.9% over last year during this same time period. Sales have been brisk due to several factors, one of which is the summer season. Most real estate markets see high-than-normal sales during summer since kids are out of school and this is the optimal time for families to move. However, with the interest rates still low, experts predict that sales will remain strong into the fall season.
Millennials, also known as Generation Y, have been a bit slower to take the leap and buy their own home, which has always been considered a big step in the American Dream. Reasons for this include larger-than-normal student loan debt and a sluggish overall economy. With the interest rates still at all-time low and the American economy in full recovery, this group is far more likely to take the plunge now.
For the week ending July 29th, the average listing price for a home in San Diego was about $679,562. Three of the most popular neighborhoods for all home buyers have traditionally been Rancho Bernardo, Encinitas and Cardiff by the Sea. The coastal areas, where homeowners would be near beautiful sandy beaches and good surfing have always brought in higher prices. Some home buyers seek out homes simply for this reason. Cardiff Reef and Swami's are among the best-loved surf spots in the area.
At the time, there are just over 1,400 homes in the state of foreclosure or pre-foreclosure and these can represent a good bargain for home buyers. Often, these types of sales require a longer closing period and special buying circumstances, but do represent a considerable savings when successful. In many cases, some renovations will be necessary but many home buyers including millennials, see this as a good opportunity to transform their home into something that more closely matches their needs, personality and lifestyle.