The Local Market Report – Fourth Quarter 2010 Â San Diego Region published by The National Association of Realtors.
Summary of the Report follows:
“Prices are up from a year ago, but price growth is slowing.” Prices rose .6 percent over the last 12 months.
“The relatively recent correction in local home prices wiped out most of the equity gained over the last 7 years. ” Prices are at 2004 levels.
“Local sales growth continues to be weak.” 2010 4th quarter sales are off by 11.4%  when compared with 2009 4th quarter sales.
“Employment has held up and is on an upward trend.”
“San Diego’s unemployment rate lags the national average, but has improved relative to the same period last year.”
“The economy of California is growing more slowly than the rest of the nation, but improved modestly from last month’s 1.42% change.”
“The current level of construction is 57.5% below the long-term average.”
“Construction is on the rise relative to last year, suggesting that the local inventory has stabilized.”
“While new construction is the traditional driver of supply in real estate, foreclosures now have a strong impact on inventories, particularly at the local level.  Rising inventories, through construction or foreclosure, place downward pressure on the median home prices.”
“Subprime mortgages make up a larger than average share of the San Diego market, but rising prime foreclosures are also becoming a problem.”
“Locally, today’s foreclosure rate (subprime) is low relative to the national average.”
“The decline of both the 60 and 90-day delinquency rates over the most recent 6-month period suggests a decline in the local foreclosure rate in the near future.”
“The rental vacancy rate in San Diego 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 of the real estate boom.  However, as the housing market slowed, the rental vacancy rate eased slightly before jumping to 10.6% in 2009.  Instead of shifting demand from home buying to renting, the sharp economic recession has forced many would-be renters to move in with parents or extended family causing the rental vacancy rate to remain elevated.  Locally, 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!
