New data from MDA DataQuick which monitors San Diego County home sales show that there has been a mild increase in prices and numbers of sales in July. The median price is up to $320,000 from the recent low of $280,000 in January. The number of sales was 3809, up 11% from July of 2008.
But experts do not predict rapid appreciation to return. The rise in the median price was partly due to a larger contribution of move-up homes of over $500,000–27.9 % of sales as against the recent low of 17.5% in January. The percentage of sold homes that had been foreclosed has correspondingly dropped to 37.4% from the recent high of 55% in January. Still, most of the activity is interest from first-time buyers and investors in starter homes in the lower price range, resulting in multiple offers.
The inventory of available homes on the market has fallen to 8,889 from 13,268 last month, although part of the fall is due to a change of definition; short-sales waiting for lender approval are now called contingent sales instead of active. The inventory of homes to choose from is down because many potential sellers are holding their homes off the market because of the depressed prices, down 38% from the 2005 peak.
Overall it appears that the market has likely bottomed out, so it is a good time for interested buyers to start shopping. There are bargains available if you are interested in Cardiff, Encinitas, Carlsbad, Oceanside, Vista, or San Marcos.