Over the last several years, the San Diego real estate market has undergone tremendous highs and lows. Part of the reason for this, is because the market experienced huge price appreciation during the boom years, followed by a severe contraction. As a result, the market is now going through a period mixed performance. Evidence of this can be found by looking no further than the real estate numbers that were reported for July. Where, home sales were down 21.7% (year over year) and the sales of condominiums had decreased by 11.5% (year to date). At roughly the same time, the market has been experiencing an improvement, with home prices increasing by 7% during the month of May (year over year).
Yet, when you look beneath these three different numbers, it is clear the San Diego real estate market has been going through somewhat of a divergence. Evidence of this can be seen with median home sales declining by 1.3% in the month of June (month to month). However, this number increased by 6.7% (year over year). This marks the 11th month in a row that prices have been steadily increasing. When you compare the performance of the market with rest of California, it is number one, as far as price appreciation is concerned. Where, it is above some of the other major metropolitan areas such as: San Francisco up 5.9% and L.A. up 5.3%.
What this shows is that despite all of the doom and gloom, the San Diego real estate market is slowly making a comeback. Those buyers, who are prudently purchasing in this down turn, will be rewarded for their vision in the future.