Current Market Conditions
Home prices are raising giving San Diego and California a positive vision of the future of real estate. But is the market really improving?
As of November 2013 the residential market “price” for homes in San Diego continues to increase. The reason being for this improvement is the number of houses available in the market. Although market conditions are a result of the normal (or abnormal) behavior of homeowners; unfortunately, prices are not only an effect of the supply that homeowners like you and I can offer to the marketplace.
Find out what's happening in La Mesa-Mount Helixfor free with the latest updates from Patch.
Why are prices going up?
The availability of homes in the market is regulated by bank-owned properties that are made available to the marketplace to regulate the price of their non-performing “investments”. These are properties that were previously owned by mortgage owners that could not continue to pay their monthly payments (due to hardship by lost of employment), or decided to not make their payments (strategic default). The last one usually happening when the amount of the mortgage is more than the price of the property backed by its mortgage at the moment of default.
Find out what's happening in La Mesa-Mount Helixfor free with the latest updates from Patch.
Today’s numbers
According to the California Association of Realtors, the number of available homes on the market has dropped from the last period by 12%. Affordability index has also gone down by 17%; however the time on the market for homes has also decreased by 2.1%. Meaning that even-though not quite affordable for the local population, houses are lasting less time on the market. Also, because of the lack of inventory, prices have increased by 22%.
What does it mean for you?
If you own a home today, this one is worth a lot more than one to six years ago. For those of us that bought properties during the last 4 to 6 years (after 2007 and before 2013), now is a good time to take advantage of the difference in price.
Whether you are a cash flow investor or a homeowner, knowing how to read today’s numbers can play to your advantage. Market conditions are in constant change and the only way to take advantage of these changes is through education and sound advice.
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Thank you for reading and have an incredible 2014.
