Tag Archives: san diego home prices 2014

San Diego – Home Appreciation Slows

Annual home price appreciation in San Diego County is nearly back to a normal pace, continuing its descent from last year’s gains of more than 20 percent.

Last month, the median price for a home sold in San Diego County was $445,000, which is 6.6 percent higher than the median price in July 2013, real-estate tracker CoreLogic DataQuick reported Wednesday.

By comparison, home prices in July 2013 were up 22.1 percent from the previous year, an increase driven largely by investors who fixed up and resold distressed properties, or rented them out and therefore constrained supply.

“When we were seeing 22 percent price appreciation, I would argue it wasn’t the case that the same exact house was selling for 22 percent more,” said Jordan Levine, director of economic research at Beacon Economics. “It was that the mix of houses were skewing toward less distressed, which pumped up those overall medians.”

Levine said he sees annual appreciation returning to about 4 to 5 percent, which is in line historically with incomes and inflation. In the housing bubble that led to the Great Recession, eased lending standards allowed home prices to grow beyond what incomes could support, Levine said.

From June to July, the median home price in the county declined by $5,000. At the same time, activity in the county’s real-estate market declined both over the month and annually. In July, there were 3,474 transactions closing in San Diego County, down from 3,736 in June, and an 18.5 percent drop from the 4,260 transactions in July 2013.

Gary Kent, a La Jolla-based agent with Keller-Williams, said he considers the current housing market to be the first balanced market since 2000, meaning it’s not a strong buyer’s or seller’s market.

“I think that’s partly because prices have reached the point that we have some people selling because they like the price they can get for the house,” he said. “The flip side is that buyers aren’t seeing what looked like bargain prices anymore. Some buyers are dropping out of the market saying, ‘Well, it’s not a bargain.’”

While the market may be returning to regular levels, inventory remains constrained, although it is improving. In July, there were 8,122 active listings in the county, up from 5,443 a year earlier, the San Diego Association of Realtors reports. July’s supply represents a little more than two months of inventory, while Levine said economists would like to see five to six months worth of inventory.

He also noted stricter lending standards were curtailing affordability, although the average rate for a 30-year fixed mortgage in July was 4.13 percent, down from 4.37 percent a year ago, Freddie Mac reports.

The slowdown in the housing market isn’t limited to San Diego but extends across Southern California, where sales fell to a three-year low, DataQuick analyst Andrew LePage said in a statement.

Read more at: http://www.utsandiego.com/news/2014/aug/13/dataquick-july-realestate-home-appreciation/

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San Diego – Home Prices Flattening In the County

San Diego County home prices were nearly flat from October to November, but are still up 18.7 percent over the year, the S&P/Case-Shiller Home Price Index showed Tuesday.

From October to November, home prices rose 0.04 percent on the index, continuing a steady monthly slowdown from the roughly 5 percent gains seen in the peak spring and summer buying season. From September to October, prices rose 0.3 percent, and from August to September, they were up 0.9 percent. The last time home values fell was in January 2013, when they dropped 1.03 percent from December 2012.

“The market’s leveling off,” said Mark Goldman, a loan officer and real estate lecturer at San Diego State University. “Prices had gone too high, then in 2008 they went too low so they recovered from that. Now we’re back to where they ought to be. We’re on the trend line.”

Goldman said he expects annual price increases to level off over the next 12 months to around 3.5 percent.

The Case-Shiller index works by comparing repeat-sales of single-family homes. In November, the index reached 194.15 for San Diego County, up 18.7 percent from the same time last year. The annual gain ranks San Diego fourth on the 20-city index, which has an average year-over-year gain of 13.7 percent, up from 13.6 percent in October.

David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices, said in a statement that prices typically weaken in the winter months, and despite a monthly 0.1 percent decline, the November performance was its best since 2005.

Seasonality aside, the housing market has seen some headwinds, most notably lower affordability with higher median prices and interest rates that are creeping up. In November, the average 30-year-fixed was 4.26 percent, up from a low of 3.41 in January 2013, Freddie Mac reports. The November median price, according to DataQuick, was $415,000 in San Diego County. It rose to $420,000 in December, a 14.8 percent year-over-year gain.

read more at: http://m.utsandiego.com/news/2014/jan/28/case-shiller-real-estate-november-mortgages/

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