San Diego County home price reaches $495,000
Source: The San Diego Union-Tribune Author: Phillip Molnar Originally Published on July 19, 2016 at: https://www.sandiegouniontribune.com/news/2016/jul/19/june-corelogic-median-price/
'San Diego County’s median home price stopped just short of hitting half a million dollars in June, real estate tracker CoreLogic reported Tuesday.
The median price last month reached $495,000, representing a 4 percent increase from a year earlier. The price has yet to hit its pre-recession peak of $517,500 in November 2005.
Sticking to its usual pattern, June had the most home sales — 4,409 — of any month this year.
The median price of a newly built home was $659,000, an increase of 21 percent since the same time last year. The resale home median, $545,000, and resale condo, $383,500, increased under 7 percent in the past 12 months.
Mark Goldman, finance and real estate lecturer at San Diego State University, said higher home prices are tough for buyers because wages are not increasing at the same rate. However, he said buyers benefit from low mortgage interest rates.
“High home prices are going to be a fact of life for San Diegans since the supply of housing is so limited and our population and employment continue to grow,” he said.
Corelogic research analyst Andrew LePage said today’s market is growing for much of the same reason as the last housing boom — job growth, consumer confidence and tight supply — but, this time, it is propped up by low interest rates instead of risky home loans.
In San Diego County, the typical mortgage payment homebuyers committed to in June was $1,794 a month, down from $2,995 in December 2005 peak (adjusted for inflation), CoreLogic said. The estimate assumes a 20 percent down payment and a 30-year fixed-rate loan.
The average mortgage rate for a 30-year mortgage in San Diego County was 3.78 percent in June, said HSH.com. That was down from 4 percent in June 2015 and 4.2 percent in June 2014.
San Diego County’s median price is still lower than other parts of Southern California. In June, the median was $530,000 in Los Angeles County, $657,500 in Orange County, and $550,000 in Ventura County.
Anthony Andaya, president of the Pacific Southwest Association of Realtors, said San Diego County’s median is lower because there is more of a diversity of housing.
“San Diego County is a huge county where there is a mixture of a little bit of everything,” he said. “Some of these other counties are not as big and a lot more focused on coastal areas.”
There may be more of an incentive to buy a condo soon. Andaya pointed to H.R. 3700, a bill approved by Congress this week that is designed to ease restrictions on loan financing for condos. It still needs to be signed by President Barack Obama.
Home sales increased across Southern California in June to bring the overall median home price to $464,000.
Over the last 12 months, the median sale price in Los Angeles and Ventura counties rose the most in Southern California by 6.2 percent, CoreLogic said. It was followed by San Bernardino County at 6 percent, Riverside County at 5.3 percent, Orange County at 4.6 percent, and San Diego County at 4 percent.'
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