San Diego Home Prices Hit Decade High
A real estate trend tracking company just reported that the San Diego median home price exceeded half $1 million for the first time in a decade! Yes, the San Diego County median home price in October was over the $500,000 mark. For October the San Diego County median home price was $507,500. so far for the year San Diego home prices were up 11%.
Although this is an excellent report for San Diego County homeowners, the snapback in the San Diego median home price has a way to go before it reaches the levels set in our last housing boom. In November 2005 the San Diego County median home price in an all time record of $517,500!
Many real estate insiders in San Diego attribute the current new decade high home price to our shortage of supply of resale homes. But, others believe the jump was mainly influenced by the increase in new home sales throughout San Diego County. In October, the San Diego new home median price was $765,000! The new home price increase for October was a huge 26% increase over the new home prices for October 2015. Not only was the new home median price up for October 2016 but also the number of new home sales in October hit 256, an increase in sales of 20%from October 2015.
The number of resale homes in October also increased by 9.1% on a year-over-year basis. In addition, the number of resale condominiums for October also increased by 10% for the year.
The San Diego Association of Realtors, showed that the number of active listings for October was off by 2,000 when compared to October 2014.
Although rising San Diego home prices are great news for all San Diego homeowners, it is a double-edged sword. The increase in San Diego home prices make it much more difficult for first-time buyers to get into our market. It’s estimated that approximately only 25% of the San Diego households can reasonably afford our median residential home price. So, many first-time buyers need assistance from family, usually in the form of co-signers and/or down payment assistance in order to get their first home.
S&P CoreLogic Case-Shiller Home Price Indices
San Diego Home Prices
this is a sure sign of a second bubble for the California housing market.