February 25, 2013
San Diego Real Estate Market Trends
Reports have indicated that the average value of real estate in San Diego has increased 14% over the last 10 years (Zillow Real Estate Network, 2013). The home value index reached its maximum value of $537k in the beginning of 2006. In contrast, the median asking price is now 12.4% lower and the lowest value in the past three years was $128k in December 2010. However during 2012, the San Diego real estate market trend has been improving, even though the residential real estate market has remained in the lower price range.
According to the article by Gillingham, after the end of last quarter, asking prices for multifamily properties have grown $152,745 per unit, and asking prices have increased 17.3% since last year. High buyer confidence, along with an unstable stock market and a very low vacancy rate has convinced many buyers to purchase or invest in real estate. The high demand has decreased the supply of purchasable multifamily estates. Instead of investing in the unstable stock market, many buyers choose to invest in real estate because they view it as more stable.
During the three months before June 2012, there was a 17.5% decline in total funds available for sale in San Diego multifamily real estate, and a 20.3% decline since the previous year (Gillingham, 2012). Purchasable multifamily estates decreased during the four months preceding June 2012 by a total of 9.7%. In this month, the number of multifamily estates buyable in the San Diego Metro Area went down, reaching its lowest point in three years. May 2012 reached the previous low. In November 2005, offers above the asking price and homes sold during days of being scheduled were no longer happening. The average home value increased by 100 percent during 2000-2005, along with an appreciation of 100 percent for adaptable/ interest only loans. San Diego real estate...