March 2014 San Diego Real Estate Market Update
Markets Warm after the Slow and Cold Winter
Like clockwork, existing home sales commonly experience a slowdown during the cold winter months. This year proved no different than normal. January's nationwide cold spell took a temporary toll on US real estate transactions. But even the bad weather wasn't able to suppress the growing housing market very much.
According to recently released sales figures from the National Association of Realtors, January saw an 8.3% year-over-year increase in median listing prices. The existing-home inventory level also went up by 3.1%. Despite the annual slow season, the market is showing off its strength through these two healthy increases. In general, US real estate is in a much stronger position than it was at this point last year. Early 2013 saw a severe shortage of properties for sale, sending buyers into a frenzy and sparking rapid appreciation in home values.
Many experts agree that one possible reason for the strong market results has been the decrease in interest rates. While both December and January saw average rates topping 4.5%, February's rates were down to 4.29%. So far, March has seen rates averaging 4.37%. While today's interest rates are higher than the 3.58% seen in March 2013, current mortgage options still provide great values for home buyers.
San Diego Real Estate also Gaining Steam
Much like the rest of the country, the San Diego real estate market is also recovering strongly from the winter slow season. Southern California still experienced the winter drop in real estate transactions , despite staying warm while snow was blanketing much of the US. Single-family home listings dropped to just 3,817 in January. After making some headway in February, the average number of listings for March is at 4,274 – 10.7% more than the beginning of the year.
While local median homes prices stayed more-or-less the same from January to February, the number of completed sales has begun to climb. February data from the San Diego Association of Realtors shows 1,334 completed single-family property sales for the month. Although still below end-of-2013 numbers, this represents a 6% month-over-month increase. With the growing volume, the current Average Days on Market for single-family homes in San Diego has dropped back down to 56 days. This remains even lower than early 2013 when the local housing market was really heating up.
Despite the typical end-of-the-year slowdown, the value and availability of San Diego homes for sale is back on the rise. This goes along with predictions that we're going to see strong, steady growth continue well into and throughout 2014.
San Diego Recent Real Estate Market Sales & Statistics
Total Active & Sold Listings
Average Days On Market