San Diego Home Values Jump Up 13 percent

In a just released report, MDA DataQuick showed that from January 2009 to January 2010 the San Diego median home price increased 5.6 percent, to $322,000. But, the real news is that on a year-over-year basis, median home price was up by 13 percent! As for the number of homes sold in San Diego, year over year, the amount was off  0.3%.

To me, a 13% San Diego home appreciation year over year would be more believable if it was negative 13%! It seems that in San Diego, the homes under $400,000 are selling quite well. The mid to upper end homes are are still languishing. Many investors are getting back into the market usually with all cash offers on lower end homes that can show a ‘better than CD ‘ rate of return. Other factors to consider are that the government buyers incentives end on April 30 and this, just like the Cash for Clunkers program, may be pulling from later in the year sales. If this is the case, we could see a marked slowdown starting in May.

“It’s possible the stars won’t line up this way again for many years. With prices and mortgage interest rates this low, the cost of ownership is about as low as we’ve seen it in decades,” said John Walsh, MDA DataQuick president. “The market is less lopsided, but before a real rebalancing occurs adjustable-rate and jumbo mortgages need to come back. Not to where they were in 2007, but back to where they were a few years before that.”

San Diego real estate attorney