February saw a seasonal slowdown in San Diego’s real estate market with a 36% decrease in detached homes and a 38% decrease in attached homes compared to the previous month. This is nothing out of the ordinary as we slowly emerge from the post-holiday slowdown. Prices saw a slight appreciation in February, around 1% for both detached and attached homes in San Diego.
2014 was the year of stability and normalcy. The housing crisis is behind us and the market is back to normal. Mortgage interest rates dropped again in January and still remain at historically low levels. This should spur home-buying for the summer months.
A lack of inventory remains a problem in San Diego although there are positive signs of this changing. As more and more people start to increase equity in their homes they will be able to move up or some may even take that equity and move down if they are moving towards their golden years. As this happens we will see improvements in housing available for purchase.
It’s still too early to predict where the market will head in 2015, but with foreclosure rates back to normal at less than 1% of all sales home equity will improve and the future looks good.
2015 San Diego Real Estate Market Update