Yes, you heard correctly, the real estate market in San Diego is looking up! After five years of a downturn and a year of relatively stable prices, local experts say we may see 3 to 5% appreciation in real estate this year and a sales volume increase of about 10%.
Why is this happening now? The number of sales that were bank owned was down 25% from March 2011 to March 2012. In the May 2012 edition of “Econoplay”, I was quoted:
“Local real estate forecasters are calling for 3% to 5% price increases this year. They also expect volume sales to increase by around 10% over 2011,” Pontzious noted. Cash buyers and people who can put down large down payments also seem to be ignoring low appraisals and buying anyway. “If they continue to do that, it will drive prices up,” she said, noting that appraisals are losing credibility because of their over-reliance on distress sales.”
The inventory in most parts of San Diego is extremely low and we are seeing multiple offers on many properties. Remember two to three years ago when it was so difficult for home buyers to have their offers accepted? We are seeing that again in some areas.
My advice? If you want to sell your home this year, get it on the market now! If you are buying a home, be prepared for multiple offers and be prepared to pay full price or over in many instances. Have questions? I can help!