July 14, 2024

Home Prices Strongest in Seven Years

home prices San Diego California

In the just released  quarterly report by National Association of Realtors® A growing number of metropolitan areas had higher median home prices in the fourth quarter, and the national home price showed the strongest year-over-year increase in seven years!

The median existing single-family home price rose in 133 out of 152 metropolitan statistical areas (MSAs) based on closings in the fourth quarter compared with the same quarter in 2011, while 19 areas had price declines. In the third quarter, 120 areas showed increases from a year earlier, while in the fourth quarter of 2011, only 29 metros were up.

Lawrence Yun, NAR chief economist, said all the conditions for strong price growth are at play. “Home sales are on a sustained uptrend, mortgage interest rates are hovering near record lows and unsold inventory is at the lowest level in 12 years,” he said. “Home sales are being fueled by a pent-up demand and job creation, along with still favorable affordability conditions and rents rising at faster rates. Our population has been growing faster than overall housing stock, so supply and demand dynamics are very much at play.” Yun added that more housing construction is needed to relieve some of the pressure in the market and keep home prices from overheating.

Here in San Diego, according to the Greater San Diego Association of REALTORS®, home sales were higher than the previous January: 15 percent for single-family homes and 8 percent for condos/townhomes. Another positive sign for the local San Diego real estate market: the average number of days previously owned homes remained on the market fell by 25 days when compared to January 2012.

 2013 San Diego California Real Estate Outlook