San Diego Real Estate Outlook – Where is the Market Headed?

San Diego Real Estate Outlook – Where is the Market Headed?

The following article from the Wall Street Journal talks specifically to California and the effects on the San Diego Real Estate market are the same.  Buyers are having to compete in a multiple offer situations on most listings which drives up the price and slowly turns the market environment.  Financing and appraisals are still a larger factor in the purchase arena and all buyers should be informed of current market conditions before executing a purchase contract.    

San Diego Real Estate Outlook – Where is the Market Headed?

Yes, the housing market has rarely looked better

The combination of affordable home prices, historically low mortgage rates, and a first-time home buyer tax credit that’s set to expire in November has created the perfect storm of sorts for buyers who’ve been sitting on the fence, waiting for the market to recover.

 ·         Standard & Poor’s reported that its S&P/Case-Shiller U.S. National Home Price index rose from the first quarter to the second, the first quarter-to-quarter increase in three years.  Its index of 20 major cities also rose, with only two areas reporting declines.  This data suggest that home prices may have reached bottom during the second quarter, and have now begun to rise.  In California, July marked the fifth consecutive month of month-to-month increases in the state’s median price.

  ·          The inventory of unsold homes rose 7.3 percent nationwide in July, according to the NATIONAL ASSOCIATION OF REALTORS®.  In California, inventory levels declined to 3.9 months, from 6.9 months a year ago, and are well below the long-run average.  The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

 Buyers sitting on the fence should note that the federal tax credit of up to $8,000 expires at midnight on Nov. 30, 2009.  With mortgage loans taking longer to close than in years past, buyers should start working with a REALTOR® now to ensure they find the right house for their needs, and close escrow by the deadline. 

 ·Homeownership provides many benefits, including security, pride of ownership, a sense of community, and decent investment returns as a bonus.  Those thinking of purchasing a home should consider these benefits when making their decision of whether or not now is the right time to buy a home.

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