San Diego Real Estate Market Statistics for September 2015
Experts are pointing at the housing market recovery in many large cities as a sign that America has fully recovered from the 2008 stock market crash. In San Diego County alone, June was an excellent month showing strong sales that reached pre-recession sales levels. In fact, the median home price rose to an eight-year high in July, selling for around $476,000. This price is up 5.8 percent year over year. Real estate professionals were excited to learn about the recovery, which paralleled the July 2007 high of $489,000 per home before the recession began.
Another strong indicator of recovery in the housing market is the number of sales. During the month of June alone, 4,467 properties changed hands and this number was up by about 21 percent from last year. This approached the housing bubble high of 4,533 homes sold during June of 2006 when the American economy was completely healthy.
Though interest rates were due to increase over the summer of 2015, the recent financial meltdown in China so affected global markets that experts are now saying that the US will not raise its rates anytime soon. Some experts believe that July's active housing market was due to fears with consumers that interest rates would soon go up. Many of those who were on the fence about buying a home may have gone forward with their plans believing that by fall, the US interest rates would be higher. Now there's very little chance of that happening.
The historic low rates continue to encourage home buyers and this has led to a greater housing demand than normal. Traditionally, as demand increases, this pushes home prices higher. The San Diego Association of Realtors currently reports approximately 7,153 active listings, which is about six weeks' worth of inventory. In the best case scenario, analysts like to see at least six months of housing inventory.
The first half of 2015 experienced slow sales, but by June it was clear that the San Diego housing market had made a full recovery. The number of foreclosures is down and fix and flip investors are busy earning good profits from buying distressed properties, renovating them and then selling for a hefty profit.
Reports say that the home sales increases were not solely limited to San Diego County. Analysts are saying that all of Southern California is experiencing its best growth rates since June 2006. As unemployment numbers continue to decline and mortgage rates stay low, experts believe that these trends will continue, which is a healthy financial sign for all of Southern California.
In Los Angeles County, there were also rises in home prices and the average house now sells for $500,000. Orange County experienced similar upturns and the median home price now stands at $629,000. These numbers represent year over year increases ranging from 4.9 percent to 8.7 percent, indicating an overall healthy housing market. Experts are hoping that these strong numbers will encourage builders and contractors to begin new home construction in some of the more popular areas so that the supply can keep up with demands.