San Diego Realtor Linda Moore reports on new findings showing that home prices in San Diego have risen almost 20% over the last year while distressed sales have dropped.
Rising Home Prices in San Diego
Standard & Poor’s Case-Shiller Housing Price Indices were released early this week and indicated that home prices in San Diego have risen month-to-month as well as year-to-year. According to the S&P 20-city index, between June 2012 and June 2013 home prices in San Diego rose 19.3%, which was one of the fastest climbs in the United States during that time period. Additionally, home prices from the previous month to the current month rose more than 2%. In most other areas of the nation home prices have increased, but growth is slowing down in those areas especially once the seasonal buying season ends.
Distressed Sales Decrease in San Diego
Recent reports have also stated that the number of distressed sales in the San Diego are decreasing. Mortgage defaults and foreclosures are now at their lowest levels since 2006 in San Diego County and, when the ease of completing a short sale is factored in, all of these component have led to a decrease in distressed sales.
Investment Buying and Flipping Homes
As a result of the aforementioned factors, there are less opportunities to flip homes in the current market. The majority of real estate investors in the state of California (about 2 in 3) intend on holding onto the property for a least a year, while the number of absentee buyers have dropped. This is not to say that investors have left the market; in fact, roughly 30% of home sales in June were completed by absentee buyers such as investors or second-home buyers, although this was down from a peak in March of 31.5%.
The housing market in San Diego is incredibly strong and whether you are looking to live in one of the most beautiful counties in the United States or purchase a home as an investment, this is still one of the best places to do so.