By John Lefferdink
In past columns, we have pointed out various signs of improvement within the U.S. housing market, ranging from rising prices to shrinking inventories and heightened buyer competition. Here in
San Diego, real estatetrends reflect many of these changes; and according to a recent
San Francisco Chroniclepress release, similar activity is showing up throughout Southern California and the rest of the country -- giving investors growing reason to reenter the market with confidence.
Here are six reasons for buyers and sellers to celebrate the end of the market slump:
- Stronger loan precautions: Between 2001 and 2006, too many under-qualified borrowers were taking out sizeable loans. Eventually, interest rates on those loans ballooned to such an extent that borrowers were unable to make payments, and the housing market collapsed. Today, such loans are no longer available. Instead, legislators and lenders have imposed strict rules to keep loans in check – a considerable safety measure when it comes to restoring balance to the housing market.
- Low market inventory: Over the last few years we’ve heard endless talk of markets flooded with available properties; but now, housing market inventory has reached a four year low. When supply dips, demand increases: and this in turn is apt to boost home values and purchase prices.
- Fewer distressed properties for sale: Two years ago, foreclosure homes made up 15% of San Diego’s real estate inventory. Today, that number has dropped to a mere 5%. By shedding the weight of such properties, which contribute heavily to decreasing home values, cities like San Diego are moving toward a real estate comeback.
- Rising home prices: Median home prices are on the rise, with current San Diego numbers standing at $545,000 according to regional market statistics.
- More pending home sales: Persistent good values and shrinking inventory have kept buyers busy, resulting in approximately 41,790 new and resale homes and condominiums sold throughout California in June.
- Faster home sales: In recent months, the average number of days that local homes remain on the market has decreased by more than half, revealing improved market momentum and buyer confidence.
with Prudential California Realty, we specialize in assisting clients in the successful sale and purchase of San Diego real estate. Our skilled team will help you use current market conditions to your greatest advantage and secure the best possible real estate value. To find out more, call us at (858) 756-8098 or visit us online today: