The latest CoreLogic report shows that home values rose 5.0% in December nationwide, compared to a year ago. This figure includes distressed sales. For the entire year of 2014 home prices increased 7.4%, which is down from the 11.1% increase in 2013.
This news is great for the housing market, and shows that the housing market was definitely on a healing path in 2014. Many wonder whether it will continue as we move through 2015, and there are many opposing views.
It is important to caution, as I always do, that to truly understand what is happening in the real estate market you need to study your own specific market, as of course the market will vary depending on area (for example, homes in the mid-west may not have the same trajectory as homes in San Diego, California). Looking at San Diego’s market as we head into February, it looks like the market remains strong and prices continue to either rise slightly or remain steady. Demand is definitely growing, and at least personally it seems listings are selling a lot quicker.
Below is a chart for the median price of homes sold in San Diego County up through January 1, 2015. You can see prices climbing back up after a (typical) seasonal dip during the holiday period.
Here is a chart showing San Diego County inventory since March of 2014. Again, after a typical seasonal dip over the holiday season, we can see inventory rates starting to climb back up as we head into February and toward the Spring season.
There are currently 5,373 active properties on the market today in San Diego County, and 3,634 pending properties. Since January 1, 1,595 properties have closed. During the same period last year (January 1 through February 3) 1,894 properties closed escrow. If you would like more data that is specifically tailored to where you live or would like to live, please contact me and I will be happy to send you detailed reports on your specific area.