Moving out to California
now means spending more than ever as the half-million dollar median
home price spreads throughout the San Diego real estate area.
Back in 2000, only a few counties in California
yielded a half-million dollar median priced home and then only
for single-family detached homes. In just four years, the fear
of rising interest rates and the region's continued desirability
is sending price ripples throughout the greater nine-county Los
Angeles and San Diego Area real estate market.
Now, for all homes in the region single-family
detached and condos, both new and resale the median price
peaked at a record $506,000 in May, according to La Jolla-based
Data Quick Information Systems, which tracks prices and other
statistics on closed transactions on all homes in California and
elsewhere.
There's little, if any, long-term relief
in sight.
Data quick's
median price reflects an 18.5 percent jump from May last yearthe
largest year-over-year increase since January 2001.
Prices in the region are being driven up by the growing number
of sales.
For all homes, a total of 12,028 were sold
in the region in May, up 13.4 percent from May last year, according
to Data Quick. In Santa Clara County sales rose 30.7 percent during
the same period.
Increased sales are the result of both
current market demand and the persistent desire to live in the
region for it's climate, topography and diversity.
Sales are also pushed by buyers rushing
to stay one step ahead of rising interest rates which have already
risen a full percentage point this year in anticipation of federal
benchmark interest rate hikes. As long as low rates allow buyers
to afford the monthly mortgage payment, rising prices won't stall
sales.
We are surrounded by water and mountains
and a limited supply of land, but it is a very nice place to live.
It's the weather and the opportunity and just the lure of being
in San Diego county. The demand feeds upon itself as home buyers
realize, in addition to shelter in a good location, they've also
landed a solid investment.
Some short-term relief on price pressure
may appear as more homes are listed for sale and the major buying
seasons wanes later this year.
There are indications now that more
homes are being put up for sale. That should take some of the
upward pressure off prices. It also means that sales counts will
stay strong throughout the summer!
If you are considering selling your home
and would like a no cost/no obligation evaluation of your home's
present market value click here
