Local Home Price Sales Up 1.1 Percent Last Month
Tuesday, August 28, 2012
San Diego housing prices were mixed in the Standard & Poor's Case-Shiller Housing Price Indices released today, but the national real estate trend is improving.
Local sales prices were up 1.1 percent in June compared to May. However, the prices were down 0.2 percent from June 2011, making San Diego among just six of 20 markets around the U.S. to post a losing annual figure.
The Case-Shiller Indices set housing prices in the cities in January 2000 at 100 and tracked their subsequent rise or fall. San Diego's mark this past June was 154.76 -- a nearly 55 percent appreciation in value over a dozen years, fourth highest in the nation.
The 20 markets tracked by the indices nationally averaged out at 142.21 in June, an increase of 2.3 percent over the previous month and a jump of 0.5 percent for the year. Three indices put out by Case-Shiller were all up in June for the first time in two years.
"We seem to be witnessing exactly what we needed for a sustained recovery -- monthly increases coupled with improving annual rates of change,'' said David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices. "The market may have finally turned around.''
Donna Sanfilippo, president of the San Diego Association of Realtors Board of Directors, said the report was encouraging.
"A lot of potential buyers have been reluctant to list their home because the market has favored buyers, but the numbers show this is a seller's market, too,'' Sanfilippo said. "SDAR believes today's news will eventually bring more inventory to the market, which is good news for everyone because inventory levels have been low this year.''
San Diego State Real Estate Lecturer Mark Goldman said home prices are lining up with the cost of actually living in the house and it’s a good time to jump into the market
"For people who are planning to live in their homes for three or five years or even longer, it’s a great time to buy," he said. "Prices are good they’re heading up."
Goldman also said the cost of buying a home in San Diego is now very close to what it costs to rent. That wasn’t always the case, he said in 2006 buying a home cost significantly more than renting the same place.
Only Atlanta, Detroit and Las Vegas have housing prices below their January 2000 starting points.