House Resale Prices Drop as Market Reaches Plateau
The average sale price of an existing house in the metropolitan San Diego area was $214,243 in April, down 2% from April, 1989, the first year-to-year drop in the monthly average since June, 1987.
Although the price drop was minimal--the average April, 1989, sales price was $217,802--it was further evidence that the San Diego housing market has reached a plateau.
After registering double-digit percentage increases through much of the late 1980s, the average price of existing San Diego-area houses has stayed within a relatively narrow range since April, 1989, according to data collected by the San Diego Board of Realtors.
Industry experts say the leveling off was inevitable after the inflationary price spiral of the 1980s. Also, the interest rates available on fixed-rate mortgages have increased a full percentage point this year, to between 10.5% and 11%, an inhibiting factor to many prospective buyers.
The San Diego Board of Realtors consists of member real estate brokers in San Diego, El Cajon, La Mesa and Chula Vista.
Another indication that housing prices in the area have stabilized is that April’s median sales price--the level at which half of all houses sell at higher prices and half for less--was $174,500, down from the $175,000 median in April, 1989, and lower than the $178,000 median price in March of this year.
Total sales by member Realtors in April was 1,483, up 23% from the 1,199 units sold in in the same month last year. There are now 11,912 homes listed for sale by member realtors, up from 7,715 listings at the same point a year ago.
SAN DIEGO HOUSING PRICES Monthly average sale prices of existing single-family homes and condominiums sold in the San Diego Metropolitan area: 1989 January: $202,240 February: $187,636 March: $197,494 April: $217,802 May: $207,478 June: $217,228 July: $209,125 August: $213,870 September: $210,123 October: $210,831 November: $209,467 December: $220,751 1990 January: $216,985 February: $210,209 March: $215,311 April: $214,243 Source: San Diego Board of Realtors
