San Diego Foreclosures Dwindling; Prices Rising

San Diego Sunrise

Carlsbad, Ca–Things are starting to brighten for the San Diego real estate market.

Home buying in San Diego may have dipped 4 percent in May, but that is likely due to the dwindling number of foreclosures available in San Diego County. And according to MDA Dataquick, the median price of homes in San Diego has increased by $5,000 since April’s report. The median home price here now stands at $295,000, substantially above the recent $280,000 low in January, 2009.

Some speculate that the rise in San Diego County’s median home prices might simply reflect the the diminished number of low-priced foreclosure sales–and inventory. With 27.2 percent fewer listings than a year ago, home buying pressure is increasing.  Also spurring this buying activity is the fear of rising mortgage rates and the $8000 tax credit for first time home buyers that is set to expire later this year.

Anecdotally, we are also seeing an uptick in the sale of higher-end properties, which could also contributes to the rosier statistics.  For example, we recently listed and sold a $2.25 million La Jolla condo (464 Prospect) in four days–for cash and with a 15-day closing (and have other high end buyers in the wings).

It appears that traffic at all San Diego coastal listings has increased exponentially in the last couple of months–and sales are also picking up.

This doesn’t mean that further price declines won’t be occurring at San Diego’s luxury real estate market, but prices do seem to be leveling out within our balmy coastal band.–Roberta Murphy