San Diego real estate blog - Peter Toner

Prices in San Diego County continued to drop through October making the affordability rate for homes in San Diego the best seen since 1991! San Diego home prices are now at a median of $325,500, it was 2002 when we last saw numbers like that. NAHB (National Association of Home Builders) also announced that 38.7 % of homes for sale in San Diego were considered to be “affordable” to those who are earning the “median” income for San Diego County.

This October MDA DataQuick reported a total of 3,598 San Diego home sales, making it the best October for “solds” in the past 3 years. Of those sales 48.6% were homes that have been foreclosed in the previous twelve months. This October also marked the third month in a row for increased sales in San Diego. The largest increases in home sales seen in those areas of San Diego County that have been hit the hardest by foreclosures such as San Marcos, Oceanside and Chula Vista.

An interesting factor is how the market is affecting the total number of San Diego homes listed for sale. As of October San Diego listings in the MLS were down by 17.7% from the same period as last year. With builders at a standstill watching the market and postponing construction, San Diego’s future may have an issue with supply and demand. If the future supply is too small for growth needs, will home prices lurch back up?

From the numbers one thing is clear… the “affordable” home prices today in San Diego are proving irresistible to an increasing number of buyers who were previously sitting on the fence.