San Diego, CA (PRWEB) November 19, 2012
The median price for new and existing houses and condominiums in Southern California reached $315,000 in October, which is a 16.7 percent increase from the same period last year (DataQuick).
This the highest median home price we’ve seen since August 2008 and the seventh straight month of annual price increases, two signs that the region’s housing market recovery is gaining momentum.
One factor at play in the home price increase is the decrease in distressed properties. With fewer foreclosed homes for sale, which tend to sell at great discounts, the entire market’s value shifted higher. This year foreclosures only accounted for 16.3 percent of home sales, last year that number was nearly twice as high at 32.8 percent.
In the Southern California region there were 21,075 homes sold, a 25.2 percent jump from last October. The increase in sales was not evenly distributed among price ranges; this is how it broke down.
The highest jumps in sales were in the more expensive coastal regions
Homes selling for less than $200,000 dropped 11.2 percent
Sales between $300,000 and $800,000 jumped 41.5 percent
Homes for more than $800,000 skyrocketed 52.4 percent
In San Diego we saw an increase in the median price of homes for October in all counties. The biggest jump in price from last year was in North County Inland; the highest-priced homes sold remain in North County Coastal.
North County Coastal: 640 homes sold for a median price of $486,000 – a 13% increase
North County Inland: 925 homes sold for a median price of $370,000 – a 18.8% increase
Central San Diego: 1,088 homes sold for a median price of $352,000 – a 15% increase
South County: 494 homes sold for a median price of $320,000 – a 8.7% increase
East County: 470 homes sold for a median price of $293,000 – a 7.7% increase
While every county’s median price was higher this year than lasts, there were a handful of San Diego cities that decreased in value. For example:
Rancho Santa Fe decreased -23.7%
Alpine decreased -13.6%
La Jolla decreased -11.7%
Mission Valley decreased -8.0%
Oceanside decreased -7.0%
Scripps Ranch decreased -6.4%
So who are the buyers? DataQuick said investors continued to account for an unusually large portion of transactions. Together with second-home purchases, they bought 28 percent of the homes sold in Southern California in October, which is a 25 percent jump from the previous year. This October, all cash buyers accounted for 32.1 percent of homes sold. Similarly, last October they represented 30 percent of the buyers.
Considering buying or selling your home? The most important thing to remember is that our market is preforming on a hyper local level and the value of a residential investment varies dramatically across city lines. Look at overall trends for Southern California, but drill down to neighborhoods data to spot true opportunities. Download our weekly Market Updates (available for every city and zip code in San Diego) for the most current data, and subscribe to our blog to receive professional articles about real estate and lending.