We all know that housing prices have taken a severe hit over the last few years. Recently, however, there are some very good reasons to be optimistic about the housing market in San Diego County.
First, CoreLogic just released their home price data which showed that home prices in San Diego dropped 3.2% in February compared to February of 2011. However, excluding distressed sales (foreclosures and short sales), prices dropped only 1.6%. This data and more can be found in a recent article
in the San Diego Daily Transcript. Clearly the price declines have been much
lower in recent months, and in some areas prices have actually appreciated
In another article, this one in the U-T San Diego, housing inventory levels throughout the county are at the lowest point in nearly 3 years. Last month there were a little more than 7,400 active listings on San Diego’s Multiple Listing Service, the lowest level since 2009. This number of homes is 38% lower than a year ago and 8% below last month’s level.
These two facts – slowing depreciation and low inventory levels – combined with the increasing sales volume, create the environment for soon-to-be price increases. We will watch these numbers closely as we move through the traditionally busier time of the sales season over the next