San Diego Home Prices
In a report from the San Diego Association of Realtors the median home price was up again May. but not at the pace of a year ago. The year-over-year increase was 7 percent this May, but it was about 20 percent in May 2013.
Also, it was noted that in May, the number of active San Diego homes for sale increased to over 7,000 active home listings in the San Diego MLS system.
The divergence from San Diego home prices vs the number of homes actually sold could be an indicator of potential reversal in home prices in San Diego. If this trend continues, it would be the same red flag that I noted in the summer of 2005, that preceded the terrible San Diego real estate crash.
It should be kept in mind that we are in the middle of the traditional seasonal hottest real estate marketing period. So, one would naturally expect San Diego home prices and San Diego home sales to move in unison. It should be obvious, that such a divergence can not continue for long. Let’s just hope that next month’s report not only shows that San Diego home prices are continuing to improve, but, that the number of homes sold has at least stabilized or actually improved. If this is not the case, the San Diego real estate market could be in for a major shock.
San Diego Home Prices
So do you think the prices should still be going up?
20% in 1 year is a bubble. I have been bidding down Every offer and getting them accepted. I think the prices got very inflated and need stay the same.