San Diego Real Estate Roundup: Home Prices Hit 5-Year High as Interest Rates Rise
By Ryan Mathys & Tracie Kersten
Sellers in San Diego have something to celebrate. According to the latest data, home prices in San Diego have hit a 5-year high – and that means more equity in real estate. With a continuous rallying of the San Diego market, the first half of the year enjoyed substantial price increases. With such rapid price gains and interest rates rising over one percent this summer, there has been a slow-down in the velocity and price trends from earlier in the year. Lenders are adjusting to a recovering market with new loan programs and expanded options for jumbo loans and high net worth clients. Inventory still remains an issue but has eased up a little in the last 60 days. Detailed market reports can be viewed here.
Well-priced homes that capitalize on market conditions are still selling quickly. In coastal markets like La Jolla and Del Mar, the demand for single family homes under $2 million is quite strong. Buyers looking in this range know what they want and are quick to move on the right opportunity. Sellers with a quality property are in a good position for selling in a reasonable time with accurate pricing and strong marketing.
We are still seeing a lot of investors, second home buyers and future retirees shopping for homes along the coast. We are seeing many buyers come from all over the US and other countries to the San Diego Coastal market as a safe place to invest their money.
In La Jolla, there were 78 closed sales in June and 62 closed sales in July for both houses and condos in the area. Current active listings can be seen here.
WHAT’S IN STORE FOR REST OF 2013?
While we have seen a slow down the last few months, we expect the rest of the year to be stable to flat. In other words, a good balanced market. While the first half of the year was clearly a sellers market, the increase in price and rates have added some balance to the market. There is still plenty of buyer demand but the frenzy has leveled off creating a good balance for well priced sellers and well qualified buyers. Regardless of what side you are on, having quality and timely information is more important than ever considering how quickly things change.
Take a look at our previous column to understand some of the ways we do things differently to achieve our client’s goals. If you don’t know what to do or where to begin, contact us and let’s discuss your situation and your options. Log onto http://www.lajollaagent.com/ or call (858) 405-4004.
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