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San Diego's housing supply woes

Posted by The Aramco Group on Sat, Jul 23, 2016 @ 14:07 PM

The median home price in San Diego County nearly reached a half million dollars in June, according to real estate data tracker CoreLogic. Prices climbed 4 percent on a year-over-year basis to reach $495,000 for a single-family home in the County. This is the latest data that point to a slow return to the pre-recession peak of $517,000 seen in November 2005.

As is typical in the summer months, more homes were sold in June than any other month so far this year. A total of 4,409 homes changed hands in San Diego last month, down only slightly from the same period last year.

A general lack of homes for sale on the market is largely responsible for the rising prices. The inventory of homes in the County is languishing at 2.3 months, far below what's necessary to support demand.

Meanwhile, mortgage rates are near all-time lows with conforming no-point 30-year fixed rates average 3.375 percent while the 15-year rate is near 2.625 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.