San Diego area median home prices rose almost 2% in April, to $290,000... after falling for 18 of the previous 19 months.
The San Diego Union-Tribune reported this week that sales activity was up almost 12% in April, reflecting an increased demand for housing brought about by discounted prices, low interest rates and an $8,000 federal tax credit for first-time buyers.
Interestingly, the percentage of sales that were foreclosures fell to 47% after rising to as high as 55% in January.
So is it a false bottom, or the start of a real recovery?
The number of homes for sale in the San Diego MLS is just over 13,000, representing a 27% decrease from a year ago. The number of sales in April was up over 20% from April of 2008.
Here's one reason why we might finally be bouncing off the bottom... in any down market, you must establish a firm base before you see the market stabilize and recover. And those coming into this market (new buyers) are in much stronger positions (mostly) than those homeowners who are coming out... because today's new homeowners are getting lower interest rates, buying at a discount, and have to pass much more stringent qualifying guidelines than buyers of four or five years ago.
We're planting a much firmer foundation this time, with better qualified, more cautious buyers setting themselves up for long-term success.
