San Diego Housing Market In Midst of Recovery

Online, June 14, 2012 (Newswire.com) - Recent statistics indicate the San Diego housing market is showing signs of recovery, a promising development for local real estate companies and homebuilders. According to the San Diego Association of Realtors (SDAR), unit sales for February and March of 2012 were up 8.9% over 2011 for single-family homes, and the month to month unit sales increase from February to March 2012 was 27.8%. The average number of days on the market for a single-family home from 2011 to 2012 is down 3 days, to 87 days, indicating that homes are being sold at an average faster rate. As the unemployment rate continues to steadily decline, currently sitting at 8.7% after sliding down from a peak of 10.9% in 2010, and more consumer confidence is restored, the market will continue its climb.

McMillin Realty, a leading San Diego Real Estate company, recently reported that they had their best unit sales for a month in five years. Isabel Hall, Vice President of McMillin Realty, also sees several factors that indicate that the housing market is in the beginning stages of a recovery.

"Economists either say the market is in recovery or it is bouncing along the bottom," stated Mrs. Hall, "I think we are experiencing a recovery regarding unit sales, but home prices are still bouncing along the bottom. However, history tells us a price increase will follow as the momentum of the market picks up."

McMillin Realty projects that months like March 2012 will become the norm. Home prices have remained relatively flat, about half of what they were at the peak of the market, and more homes are being sold as a result. "We are returning to a feeling of 'normalcy' in the market," continued Mrs. Hall, "All of these changes are noticeable within areas we [McMillin Realty] serve."

In addition to market factors, McMillin Realty has benefitted from a slew of newly hired agents over the last two years. The contributions of these agents help magnify the jump in unit sales. "We brought in some phenomenal agents to represent McMillin Realty in the community and help people find the right home," added Mrs. Hall.

Mrs. Hall also notes that the market for extremely affordable homes in San Diego is shifting from a buyers' to a sellers' market. "As this shift occurs, we will see a price increase for these homes due to high demand and a decrease of inventory. Buyers need to be prepared to make offers on multiple homes," she said. She also recommends that buyers hopeful of purchasing a home have their financing figured out before bidding on a home, and to put in their best offer first. She surmises most homes on the market will have multiple offers, and will be sold over market value in many cases. Sellers should first look at the ability of the buyer to close the deal, and then look at the price when considering offers from multiple buyers.

Only time will truly tell if we are finally on the way out of the great housing recession, however, all signs indicate that the future looks very bright. McMillin Realty has been serving San Diego for over 50 years, with offices in Bonita and Chula Vista. For more information, visit www.mcmillinrealty.com.