San Diego Housing Market Heating Up

Written by: John Landers

The U.S. Weather Bureau calls the city’s weather the “closest thing to perfect in America.” San Diego rates as America’s eighth largest city and one of the safest places in the nation. With an area that encompasses 372-square miles, the city extends across varied terrain inland and along the coast; San Diego, California has proximity to mountains and the desert.

More than 1,307,200 people reside in the city, according to the 2010 census. The San Diego urban population exceeds 3.95 million people. The deep waters of the San Diego coastline serve as the homeport for the Navy’s Pacific Fleet. About 53 ships operate out of the port. Around 25,000 sailors, soldiers, and civilians reside in the San Diego community.

The San Diego Economy

San Diego functions as the economic center for the San Diego metropolitan region. Besides military-related employment, with about five percent of all jobs related to Department of Defense (DOD) activities, more than 15,000 businesses in San Diego County depend primarily on DOD business.

The seaport also attracts major shipyards and submarine facilities. The city also has a vibrant tourism, manufacturing, commerce and international trade.

The unemployment rate in San Diego hovers around 9.3 percent in February, compared to the unemployment rates recorded for the state – 11.4 percent and U.S. – 8.7 percent, during the same period. The San Diego area has a median income of $75,900.

San Diego Mediterranean-like climate allow its residents and visitors to enjoy events, festivals and outdoor activities in balmy weather year round. San Diego’s natural attributes makes it a center for all sorts of outdoor activities, including cycling, running, walking, kayaking, surfing, beach volleyball.

The San Diego housing market has a unique quality in that the prices of similar homes can differ significantly within the proximity of just a few miles. Since the San Diego real estate market peaked in November 2005, homes prices have fallen 40.6 percent.

The rate of declined has slowed, with homes losing only 5.3 percent over the last year. Historic low interest rates, low home prices and renewed confidence about the economy have finally translated into increased home sales.

San Diego Housing Market Heating Up

Source: NY Times.com

Through March 2012, the San Diego area completed 3,237 homes sales—the highest sales total since 2006. The figure represents a 19.5 percent increase over February and a six percent rise on a yearly basis. Zillow.com calculates a median home price of $300,000 for the period January 12 – March 12, 2012, based on 3,521 home sales. The same number of residential sale transactions over the same period a year ago. Alto Research reports the average number of days on the market for at 134 days, as of April 15, 2012.

In June 2004, more than 6,925 home sale transactions took place in San Diego.

Currently, California has the second highest foreclosure rate in the nation foreclosures. Between 2008 and 2010, the state had 1 million foreclosure homes. The pattern of foreclosures tends to mimic other housing markets around the nation. Overall foreclosures activities have declined based on a year-to-year comparison. However, foreclosure filings have trended up in recent months. According to ReatyTrac, San Diego County has 17,910 homes at some point along the foreclosure process.

A study, by the University of Southern California Lusk Center for Real Estate, reports San Diego county rents increased 4.3 percent in 2011. Demand for rentals, created  by  the  mass number of families who lost homes to foreclosure and the potential homebuyers who prefer to remain renters, will push rental prices up an additional 3.4 percent, in 2012 and 5.32 percent in 2013.


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San Diego Housing Market Heating Up

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