San Diego Condominium--- Price Rise Sparks Off Optimism
After many months, the San Diego condominium market has shown signs of improvement. San Diego real estate market in the month of May has shown a slight rise in the median condo prices. After showing a falling curve for eighteen months at a stretch, the price curve showed slight upward movement from the month of February onwards. It dropped and started an upward climb in May. This indicates that the San Diego condominium market has already reached the bottom and there would be no more falling in the condo prices.
As believed by the industry experts, the bottom indicates that the local real estate market is on its way to recovery. This optimistic view draws support from the fact that increasing number of enquiries from people hunting for condo bargains. A number of seasoned realtors have reason to believe that a large number of finished units are going to be sold out in the upcoming months. At least, the experts are sure, the market will not go any worse from this point. The question that looms large at this moment is will the potential buyers qualify for a federal loan?
Although slight upturn has been observed in the property prices including the prices of San Diego condominiums, the median is nearly 40% below the price during the boom between 2002 and 2005.
However, not all the industry experts are ready to subscribe to this mood of optimism. A school of real estate experts refuse to accept that the real estate slump has started giving the signs of recovery after reaching its worst point. They would however discourage you against taking any kind of hasty decision as there are still chances of property prices going down all over again due to a number of economic factors, such as rising unemployment, ongoing foreclosures and growing difficulties in obtaining loans.
However, Peter Dennehy, senior vice president at Sullivan Group Real Estate Advisors, said they have studied the factors carefully before coming to the conclusion that all the features indicate to a definite “signs of life” slowly engulfing the real estate. It is by no means a “false bottom,” confirms Dennehy. “It’s not a one-month fluke. It’s consistent from what we’re hearing from the field.”
Add to it the drop in the proportion of former foreclosures being sold from 55 percent in January to 47.3 percent in April. Then there has also been increase in the number of active listings which was reported at 13,354 by the San Diego Association of Realtors. And, if that is not all, the National Association of Home Builders reported rising confidence among members that sales will improve in the next six months. Builder confidence also recorded a rise of 2 points to 16 on the 100-point Housing Market Index.
Ross Starr, an economist at the University of California San Diego, offers the explanation behind the phenomena. What is happening, he explained, the distressed property is changing hands of owners to end with the owners with solid incomes and healthy financial balance sheets. In a nutshell, it is the ideal time to go for San Diego condominium, if you have got the resource. As said the economist, “This is a great time to be a buyer, especially a well-financed buyer.”
