Home Prices Soar: Is it a Fluke?

San Diego Real Estate Information

(Source: SDAR – Robert Martinez)

In the first quarter of 2013, more than 7,500 homes and condominiums were sold in San Diego County, beating first quarter 2012’s 7,487. Both years show great strength in the market, especially in consideration of the dearth of inventory.

The more entrancing statistic is that single-family home prices in the first quarter of 2013 averaged nearly 15% higher on a per square foot basis than in the first quarter of 2012. Condominium prices accelerated 20% in that same time frame.

The average price of a detached home in the first quarter of 2013 was $523,000, up from $463,000 in the first quarter of 2012. In the condominium sector, the average price countywide was $322,000 compared to $261,000 in the first quarter of 2012.

In the top 10 zip codes (in terms of median dollar per square foot) several zip codes had price increases of more than 25% from the first quarter of 2012 to first quarter 2013. In the detached sector, the top ten zip codes were scattered throughout San Diego County, with sales in Solana Beach, East San Diego, Logan Heights, Carlsbad, Vista and North Park all experiencing more than a 25% price gain.

In the attached sector, all top ten zip codes had price gains in excess of 25%, with San Marcos, Ocean Beach, Escondido and Vista showing gains of more than 35%.

We cannot expect the price increases to continue at this same pace in the near-term future, but should recognize that the price increases are a confluence of an expanding job market, a major decline in foreclosures, a paucity of inventory in both the new and resale market, and a rise in consumer confidence.

Days on market are 25% shorter and in a normal market there are six-month active listings for each sale. That average is now less than three months.

The next quarter should be very interesting.

For specific information on your neighborhood or a market analysis on your home, please send me an email or call me at 619-325-4192.