March is usually the start to San Diego’s peak buying season and is generally the month in which activity in the housing market picks up, as weather improves and some families plan to move during the summer but last month was also the slowest for a March in 5 years.
Last month, 3,057 homes sold for a median $427,000. That’s a boost in activity from February’s 2,541 sales at a median $410,000, but it was a nearly 20 % drop from the sales in March 2013.
The numbers look low because real estate appreciation slowed down due to the decline in bank-owned homes thus the market has been getting back to normal! Now there are less biding wars and a greater chance of getting the home you want! Also, investor purchases have fallen..in March 2014 there were 6,223 active listings, foreclosed homes made up 5% of the inventory, in March 2011 there was 12,000 but foreclosed homes made up 33%.
The steady increase in home prices and increasing mortgage rates may also be keeping prices from appreciating drastically. Rates for a 30-year-fixed mortgage rose to an average 4.34 % in March, up from 3.57 % a year earlier, according to Freddie Mac.