Real Estate & Area News

San Diego Home Values Edge Up as Sales Decline

San Diego-based housing tracker DataQuick reported Wednesday that home prices rose in September after falling in August, while the number of sales declined for a third straight month. According to the report, home sales across the county dipped below 4,000 for the first time since April last month, as a total of 3,383 residential units were sold. That represents a 17.5 percent slide from August's sales, but is still up 5.3 percent on a year-over-year basis. The median sales price, meanwhile, edged up from $415,000 in August to $422,000 last month, DataQuick said. The year-over-year gain in home values is even more impressive, as the median has climbed more than 20 percent since September 2012.

Economists lauded Wednesday's report from DataQuick, saying it shows that the SD housing market is leveling off. One of the biggest factors, both in declining sales and rising values, is the ongoing depletion of inventory of distressed properties such as foreclosures and short sales. Last September, foreclosures accounted for more than 13 percent of all home sales and short sales accounted for a staggering 30 percent. Last month, those numbers were down to just 4.4 percent of the market for foreclosures and 14.3 percent of the market for short sales. Another factor driving sales down is higher borrowing rates, as the average rate for a 30 year fixed mortgage has gained nearly a full percentage point in just the last five months.

October 16, 2013