February 2013 San Diego Real Estate Market Update
All 50 States Showing Improving Housing Markets
As predicted nothing appears to have been able to hold back the housing recovery as improvement expands from coast to coast.
According to the latest digits from the National Association of Home Builders/ First American Improving Markets Index the housing recovery is now evident in all 50 states, with each having at least one growing metro area in the new list. Chief economist for the NAHB highlights how significant this is considering that the number of improving markets has rocketed from just 12 to 259 in just the last 18 months. 70% of all the country's major metro areas now claim improving status.
While some still point to a slow economy, improvements in residential and commercial real estate markets and the home building industry are creating jobs and will help to push the broader economic recovery. In fact experts predict real estate will be responsible for almost 50% of GDP growth this year.
New programs like those being rolled out by Freddie Mac and Fannie Mae to allow more underwater homeowners to sell and be forgiven mortgage debt even if on time with payments is expected to fuel markets further, freeing up more inventory and stimulating home sales, while preserving credit.
Spotlight on San Diego
Looking at California, San Diego home sales posted figures that rose 5 times the state average in January.Despite the typical seasonal lull following the holidays San Diego posted the best January real estate statistics in 6 years. Year-over-year home prices were up for the 10th month in a row and sales for the 18th.
According to data compiler DataQuick the median home sales price in Southern California was up 23.5% in January from a year earlier and home sales volume was up 10.6%.
While interest rates have seen a slight uptick experts wishes have been granted with the addition of more housing inventory to fuel rising home prices in San Diego County and provide more relief to home buyers that have faced fierce competition in bidding for homes.
As for sensational claims of a new boom that is too hot, remember that San Diego home prices dove 50% in the crash, leaving plenty of room for continuing and sustainable growth. Also 35% of today's local home sales are cash transactions; adding more strength and equity to the market.
San Diego Real Estate Market Statistics
The graph below shows the active number of homes for sale for the corresponding month.
This graph shows the number of closed sales for the corresponding month.
The absorption rate is the number of months it would take to sell all of the homes that are currently for sale if no new homes were to come on the market.
Interest rates are based on 30 year fixed mortgage rates.