Summary of the Report follows:
“Prices are up from a year ago, but priceÂ growth is slowing.” Prices rose .6 percent over the last 12 months.
“The relatively recent correction in localÂ home prices wiped out most of theÂ equity gained over the last 7 years. ” Prices are at 2004 levels.
“Local sales growth continues to beÂ weak.” 2010 4th quarter sales are off by 11.4% Â when compared with 2009 4th quarter sales.
“Employment has held up and is on anÂ upward trend.”
“San Diego’s unemployment rate lagsÂ the national average, but has improvedÂ relative to the same period last year.”
“The economy of California is growingÂ more slowly than the rest of the nation,Â but improved modestly from lastÂ month’s 1.42% change.”
“The current level of construction isÂ 57.5% below the long-term average.”
“Construction is on the rise relative toÂ last year, suggesting that the localÂ inventory has stabilized.”
“While new construction is the traditional driver of supply in real estate, foreclosures now have a strong impact onÂ inventories, particularly at the local level. Â Rising inventories, through construction or foreclosure, place downwardÂ pressure on the median home prices.”
“Subprime mortgages make up a largerÂ than average share of the San DiegoÂ market, but rising prime foreclosuresÂ are also becoming a problem.”
“Locally, today’s foreclosure rate (subprime) is lowÂ relative to the national average.”
“The decline of both the 60 and 90-dayÂ delinquency rates over the most recentÂ 6-month period suggests a decline inÂ the local foreclosure rate in the nearÂ future.”
“The rental vacancy rate in San DiegoÂ rose in 2009.”
“After hovering around 8.0% for much of the late 1990s, the national rental vacancy rose to 10.2% in 2004 at the height ofÂ the real estate boom. Â However, as the housing market slowed, the rental vacancy rate eased slightly before jumping toÂ 10.6% in 2009. Â Instead of shifting demand from home buying to renting, the sharp economic recession has forced manyÂ would-be renters to move in with parents or extended family causing the rental vacancy rate to remain elevated. Â Locally,Â there was an increase in the rental vacancy rate for San Diego from its recent peak of 7.3% in 2006 to 8.8% in 2009.”
If you have questions about the real estate market and how it might effect your moving plans call me at 619-258-1111. I am ready to help!