Real estate market flattens in May

By Jonathan Horn9:49 A.M.JUNE 11, 2014

Homes are lined up near Carmel Valley.
Homes are lined up near Carmel Valley. — K.C. Alfred

Annual home price appreciation in San Diego County continues to decline in single digits after last year’s large gains.

Last month, the median price for a home sold in the county was $440,000, a post-Great Recession high that is up 8.2 percent from the $406,500 median in May 2013, real estate tracker DataQuick reported Tuesday. However, that appreciation rate pales in comparison to the 21.3 percent gains seen from May 2012 to May 2013. The county is now on the brink of hitting its lowest year-over-year appreciation in home prices since 7.9 percent in August 2012.

“The sort of price spikes we saw this time last year – annual gains of 20 percent or more – are less likely today given affordability constraints, higher inventory (compared to last year) and the drop-off in investor purchases,” DataQuick analyst Andrew LePage said in a statement.

The higher median values are also dampening sales. In May, 3,654 transactions closed, 10 fewer than in April. Typically, activity jumps into the spring and summer months, which are considered peak buying season. In May 2013, there were 4,236 transactions, 444 more than in April 2013.

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About SanDiegoatHomeTeam
Christian van't Vlie and Ivana Milosevic. Helping sellers and buyers successfully reach their real estate goals while keeping them informed every step of the way, disclosing all known facts and real estate practice procedures so that all involved parties can make well-informed decision. We care and we are at your service.

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