Real Estate News San Diego – April 5, 2010 –
San Diegans experienced an earthquake yesterday afternoon, and it reminded me of the current market conditions we are experiencing here in Southern California and San Diego.Home sales are occurring across a divided marketplace. Lower priced homes are selling quickly, and mid to higher priced homes are continuing their lag in sales. Of note, however, is the fact that total home sales across the country are rapidly approaching a value similar to that which we were experiencing before the market started to get out of control.
You can see by the chart to the left that although sales still lag far behind the “boom” periods, they have continued to be strong enough to almost get us back to the baseline we were experiencing before the boom started. That’s good news.
Where Will Homebuyers Come From?
In the year 2000, when real estate activity was, shall we say, normal, the number of renters who had income sufficient to qualify for a median priced home was approximately 11 million. Now, in 2009, because of the price declines in homes, there are an estimated 16 million renters who will now qualify to buy a median priced home. These 5 million renters, along with move ups and other home buyers, represent a significant indication that there will be a pent up demand for housing as we move throught 2010. San Diego real estate is difficult to predict. But living in San Diego is always predictable….it’s fantastic!