We're only a few days into the new year and there's already great news to report. According to a recent report employment is up, unemployment is down and home prices have gotten even more affordable. While rent has gone up approximately 4%, home prices in the San Diego area have actually gone down around the same amount. It seems that homeownership is still the way to go!
While San Diego is experiencing a slightly higher job growth rate than the rest of the state (we are at 3% while the rest of the state is around 2.2%), the entire state is continuing to try to recover from previous unemployment numbers. More than 50% of October 2011's home sales were from distressed homes. Currently, however, sales of foreclosures are on the decline. Currently, they make up about 34.1% of the market, down from the previous year's 36.7%. Indications are that banks are now more willing to work with homeowners by switching their focus from foreclosures to short sales (short sales make up about 19.5% of the resale home market, up from 18.2% the year before).
The median price for a San Diego area home has decreased as well. This helped boost home sales by 8.5%. Inventory of single-family detached homes available for sale has gone down, too. There is currently a 5.3 months supply on hand, down from the previous 6.2 months of inventory.
If you are interested in buying a San Diego area home, you had better start looking now. Many local communities have found that excess inventory is quickly being absorbed back into the market and prices have either stabilized or are even beginning to increase. Mortgage companies have begun to ease their lending restrictions. Coupled with the continuing low interest rates available, it's a fantastic time to get your piece of the pie.
Sellers are experiencing success in the Coronado marketplace as well. Remember to work with your real estate agent to price your home competitively so it sells in a timely manner. Make sure they run comps in the area to help you decide on the right sales price for your home. Getting a home inspection can help you fix your home's trouble areas before you place it on the market. This can help keep your sales price up as well.
If you need help buying or selling a San Diego/Coronado home, please don't hesitate to contact me. I've helped more than 1,000 individuals and military families find their perfect home for almost three decades now. Let me help you today.
Mark Levenson, Helping You Buy and Sell Homes, Condos and Investment Property
“Building Dreams One Client At A Time”
Over 1,000 Clients Served Since 1981