November 2013 San Diego Real Estate Market Update

Q3 Shows Strong Real Estate Growth All Over The United States

The first half of 2013 helped strengthen real estate markets all over the country and as reports roll in for the third quarter the housing market is showing little evidence of slowing down. In their quarterly assessment of the national housing market which was released last week, the National Association of Realtors reported that Q3 brought median home price increases in 88% of the country's 163 tracked metropolitan areas. During Q2, 18% of measured areas saw double digit gains compared to 2012 median prices; figures over the past three months shows that number has skyrocketed to 33% of markets seeing increases of over 10%. According to the NAR, this widespread median price growth during the last quarter shows the highest annual gains in over seven years.

Despite rising interest rates, the national market is seeing more buyers than it has in years. In the United States housing market there were 2.21 million homes for sale at the end of Q3. While that figure is slightly higher than the 2.17 million seen at the same time last year, increased activity from buyers has reduced the national average supply of homes was down to 5 months of inventory. This increased buyer activity has shaved nearly a month's supply off the 5.9 number recorded in 2012.

San Diego Ranks As One Of The Nation's Strongest And Highest Value Housing Markets

When it comes to setting real estate trends, California continues to maintain its position as an undisputed leader. In the NAR report, San Diego is reported as the fifth highest median value real estate market in the nation. Although the San Diego metropolitan area rounds out the top five, the California communities of San Jose, San Francisco and Anaheim-Santa Ana also made the list in the first, second and fourth places respectively.

Locally, the number of homes for sale continues to grow steadily as homeowners continue to take advantage of strong market conditions. According to the San Diego Association of Realtors, October brought not only an increase in listed properties, but also a sharp rebound from the decline in home sales seen in September. Last month, the number of single-family homes sold increased by 13% and presented the biggest single-month gain since sales skyrocketed to 2,497 in May. Many experts speculate that the increase in sales is due in part to the average mortgage rate dropping to 4.27% last month after hovering around 4.5% since July.

One further testament to the strength of the San Diego real estate market is in the local average home supply. While the NAR reported nationally that there is a five month supply of homes for sale, a slowly eroding inventory shortage and increased demand from buyers puts the local figure at less than 2.5 months.

San Diego Recent Real Estate Market Sales & Statistics

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