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.