San Diego Home Prices Are Rising

Posted on June 17, 2009 | by Denny Oh

Today’s Union Tribune had an article stating that San Diego homes prices are going up.  According to the article, San Diego County’s median home price rose last month by $5000 to a price of $295,000.  With 3,242 sales in the month of May, San Diego’s activity is up from last May by 8.8%.  In fact, San Diego has seen 11 straight months of “year-over-year” sales increases.

Does this mean the bottom is behind us?  Doubtful.  Although we’re seeing slightly higher prices, we still have plenty of short sales and foreclosures that will continue to keep prices down.  I anticipate that we’ll see another 10% or so in price drops over the next year, followed by a flat bottom.  My guess is that people will begin to see profits in the 5–7 year range. 

The median price of $295,000 is 43% below the “all-time high of $517,500, set in November of 2005” and people are beginning to take advantage of it.  People are able to buy homes in areas that they never imagined they could.  There are less multiple offers and rates are low(even though they just went up).  I’m seeing a lot more “I want to start looking now because I think we’re near the bottom” buyers and I’m also seeing more sellers who are looking to get rid of their homes.  If only I hadn’t bought my home in 2005…

 

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