San Diego Real Estate Price Drops

There has been a slight price drop in real estate in San Diego County, as stated by Zillow Real Estate. However, the median was still higher by 3.5% in comparison to February last year.

February’s median home price was down 1.7 percent from January, which brings it around $455,000. Moreover, according to MarketPointe Realty Advisors, an average rent for San Diego County was $1,618 a month in March. The hardest hit took the resale condo market, with the price dropping from $360,000 to $350,000.

home for saleOverall, there was a significant increase in the number of sales compared to the sluggish winter season. According to CoreLogic Real Estate there were 2,648 homes sold in the last month, making it 11.7 percent higher than the previous month and up 2 percent from February 2015.

As stated in California Association of Realtors in comparison to other six Southern California counties, the biggest effect on the median home price, month over month, was in San Diego. The second place took Orange County with a drop of 1.5 percent.

However, as stated by Andrew LePage, a CoreLogic research analyst, the fluctuant prices for January or February shouldn’t be taken too literally because usually according to statistics those are the most sluggish months for sales.

“It has a lot to do with who is and isn’t out buying during the holidays during the middle of winter,” he said.

According to California Association of Realtors, the city with the highest sales in the county was Oceanside, making about 122 home sales in February. The next three cities following it were; Fallbrook with 51 sales, Escondido with 48 and Chula Vista making 44 sales.

Moreover, the most expensive residential property in the county was Coronado, with its striking luxury homes, similar to that of nearby coastal La Jolla. Coronado had an approximate value of $987 per square foot in February as stated by Zillow.

According to CoreLogic, cash sales took up about twenty three percent of total purchases in February, making it twenty percent higher than January and up 19% from December. Not to mention, mortgage payers were at a great advantage as well, since the interest rates were at its lowest out of the whole year. HSH announced that on Feb. 3 the rate for a 30-year fixed mortgage was 3.74 percent.

In February approximately 25 percent of homes were sold to absentee buyers, as mentioned by CoreLogic. Home prices are likely to slowly rise, as shown by the number of cash sales and absentee buyers which in turn is interrelated to the investors that rent, said Dana Kuhn, a real estate lecturer at San Diego State University.

“The only reason someone is going to buy a house and not live in it, is it is a financial play,” Kuhn said. “. . . The fact that they are still in the marketplace in these numbers suggests they don’t think the wave has crested yet.”

According to Zillow, San Bernadino County had the highest median sale price increase at 10 percent to $275,000 in the last 12 months, compared to the rest of Southern California. Next on the list were Ventura at 7.7 percent; Los Angeles at 4.2 percent; Riverside at 3.6 percent; San Diego at 3.5 percent; and Orange at 3.4 percent. Additionally, Orange County had the highest median price in the whole of Southern California at $610,000, said Zillow.