Photo Credit: realtown.com
While many of the housing markets in California have struggled to maintain both housing sales and home prices, it looks like San Diego might be one city where there’s a strong possibility that real growth is just around the corner.
San Diego is one of the few housing markets that actually shows a dramatic increase in the median price of homes for the decade. San Diego home prices have actually gone up more than 48% over the course of the last 10 years. True, the final number is down from the peak of home prices between 2005 and 2006, but the overall performance in home sales over the last nine months has helped offset the major losses that occurred in 2008 and the beginning of 2009.
One area of San Diego where the residential real estate market is showing some growth is the downtown area. For the last 11 months of 2009, there were 511 new home sales compared with 280 for the entire year of 2008. Per Developer Sherman D. Harmer Jr., chairman of the Downtown Residential Marketing and Builders Alliance and president of Urban Housing Partners Inc, those numbers equally to the same type of sales figures that were being exhibited in 2000. Of course, these are condominium sales in high towers, and not single-family residential homes, but its residential property nonetheless.
As it pertains to single-family homes, since the end of May home prices have gone up an average of 4.4% for the resale of existing homes. In the whole market, resell homes went up about 8% for the first 11 months of 2009. That’s still way down from the peak, but it shows that home sales in home prices are moving in the right direction.
According to MDA DataQuick, a San Diego-based real estate analyst company, home prices are within 20% of where they were at the end of 2006. That is an amazing figure, considering that more than 41,000 homes were foreclosed upon in the decade, most of those within the last two years.
This all seems like good news to home building companies like Brookfield Homes, which just started working on brand-new planned communities in the area, with an emphasis on being energy efficient and environmentally friendly. Since these will be relatively expensive homes, with prices starting around $600,000, it’s apparent that at least for this home building company, they see only good times ahead for the San Diego real estate market.
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