Lower-Priced Houses Spur San Diego Market a Bit
The local housing market warmed up somewhat in July, thanks to increased demand for mid- to low-priced units. However, the market for homes in the upper price levels--$250,000 and above--remained weak.
A drop in mortgage rates this week fueled hopes among brokers that market activity will increase in August. HomeFed Bank dropped its 30-year fixed-rate mortgages to 9.25% this week, the lowest fixed interest rate in several years, a HomeFed spokeswoman said.
The median price of houses sold by member brokers in the San Diego Board of Realtors in July was $185,000, up 4% from the $177,500 median price reported in July, 1990. The median price is the level at which half of all transactions sell at a lower price and the rest sell for more.
The average price of all resales in July was $221,036, a 1% decline from the $222,591 average sale price in July, 1990, further evidence that relatively few higher-priced houses are selling, said William Logan, president-elect of the association.
The total of sales transactions by board members in July was 1,625 units, up 16% from the 1,403 units sold over the same month last year. San Diego Board of Realtors members handle the majority of resale transactions in the San Diego metropolitan area, which includes La Mesa, El Cajon, Chula Vista, National City and San Diego.
The slow market for higher-priced homes was also reflected in recent subdivision sales figures tabulated by Market Profiles of San Diego. During April, May and June of this year, the most recent figures available, the average price of new houses and condos sold in the county was $230,188, off from the $234,005 average price over the same three months in 1990.
Although prices remained flat, sales activity increased. New units sold over the quarter totaled 1,887 houses and condominiums, up from the 1,635 new units sold during the same quarter last year.
