"Eight months of rising home sales, reports of competitive bidding on properties, and growing confidence among investors, first-time buyers and home builders all seem to suggest a local real estate market on the mend."
So begins Roger Showley's article in today's San Diego Union Tribune, which paints a much brigher picture of the San Diego housing market than what we have been accustomed to seeing in print.
Now those of you out there selling homes know that there is competition for well-priced listings - in fact, bidding wars are not uncommon with bank owned foreclosures in many areas.
But with interest rates in the 5% range, values 25% to 40% off their 2005 highs and an $8,000 tax credit for first time buyers (through November 30), fencesitters are getting lonely as more and more serious buyers charge back into the market.
February marked the eighth straight month of higher home sales (year-over-year), showing again that buyers and investors both feel like the San Diego real estate market has regained its affordability. The change is most pronounced in areas like Eastlake (Chula Vista) and Oceanside, where values have fallen so far that first-time buyers are rolling back into the market at rates far greater than in other areas of the county.
According to the UT article, since January 1 the proportion of sales in Eastlake is occurring at twice the community's normal level, while Oceanside is selling at a rate four times greater than its traditional norm.
During the good years, the spring market was always crazy. Right now, we're back into our most active spring market in at least four years.
