The San Diego real estate market has greatly improved in 2010. San Diego homes sale prices are up double-digits from year ago levels, led by resale houses and condos. Surveys of home builders and consumers are showing a return to confidence. The San Diego economy is again proving its resilience.
According to DataQuick, the median price of a home in San Diego was $325,250 in April 2010, compared to $290,000 in April 2009. That is 12.2 percent increase. Resale condos have seen the biggest rise, from a median of $182,000 in April 2009 to $220,000 in April 2010 (up 20.9%) while the median price of houses sold in San Diego rose from $325,000 in April 2009 to $368,000 (up 13.2%) during the same period. New homes are the exception, as builders continue to cut prices in order to remain competitive with the resale market. The median price of a new homes in San Diego decreased from $438,000 to $442,750 (-6%) in the past year.
And even the new home builders are stating optimism about the future. The National Association of Home Builders just released their survey of builder confidence, called the NAHB – Wells Fargo Housing Market Index. For the Western region, the May 2010 index is at 20. Nationwide the index rose to 22 (up from 19 in April), putting the index at its highest level since August 2007. In San Diego, new homes are again being built to meet renewed demand in Del Sur, Rancho Bernardo. Houses in Rancho Penasquitos, and in Chula Vista / Otay Lake are also under once again construction.
Looking to the future, there is reason to believe that the San Diego real estate market will continue to rise along with the overall economy. The high-tech, biotech, and medical industries in San Diego are adding a lot of new jobs. Qualcom is staffing up in expectation of the release of the new iPhone which will be compatible with the Qualcom CDMA technology. The genetics research labs are experiencing phenomenal growth with new products and research grants. UCSD is building a new hospital. These are high-paying jobs, and will result in more demand for San Diego homes.
Inventory of homes for sale remains low in most low-to-moderately priced San Diego neighborhoods. There has been no flood of San Diego foreclosures for sale. Foreclosure properties are being released very slowly by the banks, and the foreclosures that are being released for sale are consistently receiving multiple offers. Home buyers are actually finding it very difficult to find and buy homes in the median price range.
The San Diego home sales figures for June are expected this week. Come back for an update or call the San Diego real estate professionals at Keller Williams for answers to your specific questions.
I’ve noticed that in my area of SoCal as well. In fact, there have been two homes this past week that have sold for more than the asking price, so things are heating up.
Home builders are getting more confident. Great. Just what we need are more new homes to compete with the massive inventory of vacant, bank owned properties.
I know that home sales have risen just because in the past month in my neighborhood there has been a bidding war over list price for a couple of homes, so this is encouraging indeed.
Do you think that the Condo prices will come up faster, since they seemed to have dropped like a rock? I know this will take some time, but I am amazed at how much condos have dropped in some local markets. Over 50%-70% in some places. The market was obviously over priced, this is not a secret. It still remains amazing in my mind, every day.
Keith
RallyRE
I think the price move is not only in San Diego its there in all the market but the price is less as compared to 2009. The real estate market is large because of many people are changing their location for business and job needs. I hope the price will hit higher in the coming future.
I really cant believe it that although the prices have gone down from the start or you can say before recession, but its quite amazing that in San Diego the prices are going up….
This is not to say that San Diego home prices are going to be heading through the roof anytime soon. But I can say that we’ve seen stability, and upward price pressure at the bottom end for entry-level homes. San Diego real estate has a lot more demand and lower supply than most areas of the country. It doesn’t hurt that our weather is usually perfect! Thanks for your reply!
Glad we were able to help you!
Your welcome. It is definitely a trend that we’re seeing again this year in the San Diego real estate market.
Ranking pretty highly for San Diego real estate! Thanks for your comments.
Thanks for your comments and thanks for sharing! We definitely work hard on our San Diego real estate website!