Monday, January 29, 2018 / by Sean Zanganeh
San Diego County new home prices are higher than ever before. We pulled this great article from the UT San Diego just for you...
The median price for newly built single-family homes and condos in San Diego County shot up to a record high in December, while the number of new homes sold hit a record low for a December.
Last month, 284 new residences sold at a median $699,000, a 48 percent hike over the $473,250 median new home price in December 2012, when 419 new homes sold. The previous record for a median new home price was $553,000 in February 2008, when 330 units closed escrow, real estate tracker DataQuick reported Tuesday.
The new home sales may have skewed the data up due to a number of high-end closings scheduled to be on the books by the end of 2013.
“If builders are trying to get their business plan done by the end of the year, they may have phased in construction to close in December,” said Paul Barnes, president of Shea Homes San Diego, a homebuilder of various properties including some neighborhoods in Civita in Mission Valley. “If a project is extremely high end and there’s not a lot of other competing activity you’ll get those aberrations.”
Last month, two Carmel Valley communities, Alta Del Mar and Watermark, closed on 16 homes with a median price between $1.1 million and $2.4 million, said Matt Sauls, a spokesman for developer Pardee Homes. Sauls said Pardee aims to hit the closings by December, the end of the company’s fiscal year. Elsewhere, in Mission Valley, 24 new homes closed at a median price of $740,000, while in Rancho Bernardo, 46 new homes went for a median $872,500. The 284 new homes sold last month were the lowest for a December since at least 1988.
“If you look at our numbers compared to another metropolitan area with our population base, San Diego should be producing a lot more housing stock,” Barnes said, noting a lack of land combined with constraining regulations.
In December, new home sales made up 9 percent of the 3,099 total real estate transactions in San Diego. Overall, the median price for all homes sold countywide in December was $420,000, up from $415,000 in November. It was the first price increase from a November to a December since 2009, leaving the median slightly below its six-year high of $422,000, reached in June. Despite the monthly uptick, the housing market has slowed in the last year.
Annually, prices are up 14.8 percent, a continued drop from year-over-year peak of 24.1 percent gains seen from June 2012 to June 2013, when the median price was $416,000. Transactions in December were 17.5 percent below the 3,757 in December 2012.
In Southern California, the number of sales fell in December to a six-year low.
“The pitifully low inventory is the main culprit,” DataQuick president John Walsh said in a statement. “The jump in home values over the last year suggests we’ll eventually see a lot more people interested in selling their homes, which would help ease the inventory crunch. More supply would put downward pressure on prices, as would rising mortgage rates.”
Still, Walsh said home prices could continue to rise because supply will remain low, the economy is improving and those who lost homes in the foreclosure crisis could re-enter the market.
Mark Goldman, a loan officer and real estate professor at San Diego State University, said he’d expect the market to continue slowing, with annual gains leveling off at 3 percent as interest rates creep up and affordability declines. The average 30-year-fixed interest rate was 4.51 percent on Jan. 9, up from 3.4 a year earlier, Freddie Mac reports.
In December, there were 6,228 active listings in the county, according to the San Diego Association of Realtors. That’s down about 620 from November, but up from the 4,636 listed in December 2012.
Around Southern California, Orange County is seeing 21.3 percent annual price gains to a median $570,000, while Los Angeles County median prices are up 22.2 percent to $430,000.
From the Union Tribune at utsandiego.com