San Diego Real Estate market. Of course our primary concern is always the current state of San Diego Condos and Downtown San Diego condos. However…the Real estate Summit was designed to give everyone a perspective of both the local and Macro levels of real estate progress over the last year. The summit featured a carefully put together group of panelists that were there to provide a perspective on every aspect of the real estate industry: Representatives from the California Association of Realtors, banking/mortgage, economists, tax experts, top real estate professors, and leading real estate focused economists. The results were designed to provide local Realtors an update of where were are currently in the San Diego Real estate market place, and where the real estate trends and markets will take us in the future.
Current State of the San Diego Real Estate Market
Everyone on the panel and in the audience was pleased that the general “pulse” of the San Diego Real Estate Market seemed to be very positive. San Diego condo and home prices have seen double digit growth over this past year (especially in the last 6 months or so), and these positive results seems to make everyone encouraged about where we are going in the future. Here are some of the highlights.
-San Diego Condo values and prices are up in almost every category from this time last year
-The purchase market has grown to reflect the highest levels of pure resales since the market issues of 2009 (Less short sales and Foreclosures)
-Affordability was increasing as investors and homeowners were taking advantage of the lower interest rates.
-In San Diego County this month, the lowest rate of mortgage delinquencies were recorded. This is a sign that homeowner finances are getting healthy
-There is still a-lot of private capital on the sidelines
-Inventory of San Diego condos is down significantly. In Downtown San Diego there is less than 2.77 months of inventory (This represent 224 Downtown SaN Diego Condos currently available for sale)
-There are many reform proposals that are moving to litigation which will help the growth and construction of new homes. Construction is the pulse of a healthy real estate market.
-Equity sales represent over 85% of the market. Each month…REO (foreclosure sales) and Short sales have decreased.
-Foreclosure home sales were at 7% in June as opposed to the consistent 20% plus average
-Historically, the low interest rates even though rising continue to be at historically low levels.
-San Diego Condo values have increased 17% to 19% since this time last year. This is the largest year over year value increase since 2005.
-San Diego is outpacing the national growth by 12% in some categories.
-Prices of San Diego Condos has increased significantly as a result of the investors in the real estate market.
-Affordability of San Diego condos will always be in question as values rise year over year.