Bloomberg News reports that the S&P/Case-Shiller index of property values increased 12.2 in May in the 20 largest metropolitan areas of the U.S.
In San Diego County home prices were up 17% in May according to the San Diego Union-Tribune’s article about the Case-Shiller report.
In my day to day real estate activity I’m seeing an increased number of price reductions on current listings. Market times seems to be getting longer as properties aren’t selling immediately after being listed for more than the asking price. This is good news for the housing market. The market has been too hot.
Terrific two bedroom, two bath condo overlooking the Del Mar Race Track. Offered for $925,000.
San Diego Home Prices Up 24%
Limited inventory is still forcing home prices higher as potential buyers compete to purchase a home before interests rates start climbing. The San Diego Union-Tribune reports that DataQuick’s statistics for June show the average San Diego sales price was $416,500 – the highest since 2008.
Mortgage rates fell last week to 4.29% according to an article in the San Diego Union-Tribune. Many were predicting that rates would only go up in the foreseeable future so this unexpected drop is a pleasant surprise for home buyers.
Jim Cramer’s blog, The Street, reports that home prices are likely to rise 13.2% nationally in June. The article cites historically low interest rates that are trending higher as the driving force behind home buyer demand.