San Diego Real Estate Market Update

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Here’s the latest San Diego real estate news.  Across the county we are seeing strong demand for homes at current prices, particularly for the “average” homes for sale in San Diego.  The more upscale San Diego luxury homes are still facing some downward pressure, but there is substantial support for the entry-level houses and condos over the past year, including price increases in some neighborhoods.

We pulled four representative San Diego real estate markets and compared the past thirty days with the same period in 2007. As you see below, prices of San Diego homes are down thirty to forty percent from their highs in 2007.  Yet the number of San Diego homes sold has increased substantially, twenty to forty percent, indicating strong demand at current prices.  San Diego luxury homes are also selling, albeit at reduced prices from motivated home owners.  Approximately 30% of the homes sold in the past month were San Diego foreclosures.  The inventory of foreclosed homes is largest in South Bay and in East County.

The “DOM” is “Days On Market”.  The average time it takes to sell a home in the current market is actually less than the 70 to 90 days stated below.  The 70-90 DOM number includes Short-Sales, and bank approval for San Diego short sales requires an about six months.  The non-distressed properties that are priced correctly are actually selling very quickly.  In general, the San Diego real estate market has been moderately active.  Many are hoping to see increased activity in the San Diego luxury homes sector in the coming months.

San Diego North County Inland  (October 8, 2011 to November 7, 2011) (256 Sales)

 

Compare same region during same time frame in 2007  (191 Sales):

The Average Sale Price is DOWN 33.4% and the number of sales is UP 34%.  Strong demand at current prices.

 San Diego North County Coastal (October 8, 2011 to November 7, 2011) (373 Sales)

 

Compare same region during same time frame in 2007  (316 Sales):

The Average Sale Price is DOWN 20.2% and the number of sales is UP 18%.  Strong demand at current prices.

San Diego Metro Uptown (October 8, 2011 to November 7, 2011) (203 Sales):

 

Compare same region during same time frame in 2007  (145 Sales):

 

The Average Sale Price is DOWN 24.2% and the number of sales is UP 40%.  Strong demand at current prices.

San Diego South Coastal (October 8, 2011 to November 7, 2011) (95 Sales):

 

Compare same region during same time frame in 2007  (116 Sales):

 

The Average Sale Price is DOWN 35.9% and the number of sales is UP 18%.  Strong demand at current prices.

Geoff Schiering is one of San Diego’s Top 10 Realtors in North County, specializing in San Diego luxury homes, beach homes, and estate properties. For more information, contact the San Diego Realty Pros at (800) 955-6463. Our real estate agents will represent clients with residential and commercial real estate transactions.

11 responses to “San Diego Real Estate Market Update

  1. This is great news since if I’m not mistaken, the average or lower ends homes market usually point to a trend (plus most of the sales) whereas the upscale home sales are more of a wildcard as to whether they indicate a trend or not.

  2. Hi Honya. KW is a great company. It’s now the second largest real estate brokerage in the United States. You should have heard of Keller Williams. We started in Austin Texas! If you’d like more information about the company, let me know. It’s a great arrangement between brokers and agents. I’ll get you started.

  3. There are a lot of real estate markets around the world that are BOOMING right now. There’s been an over-reaction in the San Diego real estate market. All those investors who are overbidding on real estate in Toronto and in Shanghai would be smart to shift their focus to the down markets in the United States. All the markets have cycles, and smart investing is all about timing!

  4. Yes, it’s definitely getting better. Our inventory of homes for sale in San Diego is down sharply, and there is a lot of competition at the lower end. Unless a bunch more foreclosure houses come on the market, we expect price increases. And there is no indication that the banks are going to flood the market with foreclosed homes in San Diego. What’s the foreclosure inventory like in Las Vegas right now?

  5. Thanks for the update. It helps me a lot. Real Estate market has always increasing all over the world. Because many people need homes the demand also in real estate market is getting higher.

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