Arguably one of the most picturesque cities in America with some of the best weather, San Diego, California, is a city with coveted addresses, many situated right along the Pacific coast. The number of people wanting to flock to this southern California haven never seems to diminish, as its population continues rising. The city, the eighth-largest in America and the second-largest in California, was estimated to be home to a population of about 1.4 million in 2010, with 2.8 million in regions beyond the city limits. The city is also considered the fifth-richest major city in America, and is thus naturally home to a higher-priced real estate market than most cities.
San Diego was hit hard by the downturn in the housing market in the U.S. the erupted after the financial crisis and ensuing recession brought about, at least in large part, due to the subprime mortgage explosion. The median values of San Diego real estate fell substantially over this period as the demand for real estate dried up and many potential, qualified homeowners found themselves unable to qualify for financing on a new home. Likewise, many mortgage holders living beyond their means saw their payments catch up with them, and the number of foreclosures in San Diego rose to near all-time highs.
According the San Diego Union Tribune monthly real estate chart, June, the most recent month for which statistics have been compiled, saw a mixed bag. In Central San Diego, there were 597 single-family homes sold at a median price of $405,000, up 11% annually, an encouraging improvement. The market for condos, however, did not show such improvement. There were 493 condos sold in central San Diego in June at a median price of just $254,000, down 2.3% year-over-year. New homes for sale in San Diego were hit the hardest as the demand for newly built homes remains scant. There were 91 new homes sold during June in the city at a median price of $314,500, down a full 39.2% from the same time one year ago.
The eastern portions of San Diego County saw increases in all three categories of single-family home prices, condo prices and new home prices, as did the area considered North County/Inland. Coastal areas in the northern part of the county saw home prices rise 9.3% but condo prices fall 5.7% and new home prices fall 14.6%. The southern parts of the county, too, saw rises in resale homes and condos but a 20% decline in new home prices. These statistics all seem to point to a brighter future still ahead for San Diego, albeit at a more cautious, steady pace.