While most of the country does seem to be rebounding from the real estate debacle; San Diego seems to be leading the back in a rebound of home sales. This news is not only great for San Diego, but for the nation in general. Why is that? Well because San Diego, CA was one of the first areas to see a demise during the home crisis. The fact that in the early quarter of the year, this same city is now not only stabilized, but seeing an increase in home prices means that other cities are likely to follow. The California Association of Realtors announced in January of this year that home affordability in San Diego was around 51% making it very affordable to buy homes in the city. Many believe that the current governments? institution of the homebuyers? tax credit is a key incentive to home owners making a decision to buy and buy now. Since the credit ended the last day of April, we have yet to see if this homebuyers? credit was the main driving force in San Diego?s recovery or if they had truly hit bottom and have no where else to go but up. Again, all good news for the nation?s real estate market.
This is not the case for commercial real estate in San Diego however. To date, commercial real estate on the whole seems to have declined being down 26% since a peak in October of 2007. There does seem to be an interest in the higher end commercial real estate properties, but the median buildings are pretty much at a stand still. There has been an increased in distressed commercial property as well as residential in relation to the properties that are in good working order.
The median home price in San Diego is almost $400k. As of the end of April, 2010, there were almost 15,000. In the 75th percentile, there are many homes for sale for over half a million dollars. The real estate market on the whole is watching how the market in San Diego will unfold. It may be an indicator for the rest of the nation going forward and as of now, the results look pretty good.