On Tues., Sept. 15th, the San Diego Union Tribune reports that median home prices in San Diego County rose to $325,000 in August, and this marks the fifth straight month of an increase. Analysts say that they hope this means the market is stabilizing, but it does not mean that all homes are regaining the value they have lost.

The higher numbers may also mean that fewer distressed properties (short sales and foreclosures) closed escrow last month. These lower priced homes are moving slowly through the market, and escrows are often long waiting for bank approval. Sales were down 13.2 percent this month, representing 980 foreclosure properties closing in August compared to 1320 properties in July.

The inventory of active listing on the MLS stands at 8462 — about a two-month supply at current selling rates. Usually that kind of tight number represents a seller’s market where multiple offers are received on a property and the offers are above list price. This is indeed the case for properties sold as short sales or foreclosures. But above a selling price of $400,000, sales are slow even though there is a low inventory.

Another possible factor contributing to lower sales activity is the lower availability of federal and state home buyer tax credits. The $10,000 state tax credits for new-home buyers were largely over by the end of June. The $8000 federal tax credit for first-time buyers expires on Nov. 30th.  It’s getting almost too late for first-time buyers to find a property, get financing, and close escrow before the deadline.

Analysts hope that a rebound in home values is coming, but it will still be slow.