All real estate is local and the San Diego real estate market shows that it is busting out from the national trend. This is due largely to the supply and demand behavior of any commodity, and in this case, there is almost no supply (relative to demand).
San Diego Market Inventory
For most price ranges, there is less than a month of inventory for single family detached homes, and about 3-months up to $700,000. A similar story exists for single family attached homes (e.g., condos). There is less than 3-months of inventory up to the $450,000 price range.
This turn-around actually began last January (as evidenced by sales closing in March). We have mostly seen a climb in prices throughout the spring and summer, with a not-unexpected dip as we hit the fall.
San Diego 3br 2ba SFD Median Price and Price per Sq Ft
All the news is not completely rosy as the high end of the market is still suffering and remains a buyer's market above $600,000 for attached homes and above $900,000 for detached homes. This part of the spectrum may have to wait for the economy to improve before we see a real dent in these numbers.
If the first time homebuyer credit is discontinued, then perhaps the demand will shrink sufficiently to put the market back into balance. But, if the tax credit is extended (as appears very likely), then one should expect a surge in home prices in the San Diego area.
This is the time to make good use of FinestExpert.com to perform your real estate search according to investor criteria and to find cashflow investment property. Pay close attention to property FE-Scores and the market trends that FinestExpert.com displays, not only for the San Diego real estate market, but all real estate markets nationwide.
