According to a recent article in the San Diego Union Tribune, March 2011 home sales were considered "weak" in comparison to home sales this time last year.
A valid reason for the lull in March home sales could be attributed to 2010 first time home buyer tax credit. Although spring and summer are typically the busiest home buying seasons, we experienced a false market in March 2010. Consumers rushed to meet the April 30th deadline in order to take advantage of the tax credit. This year, it seems some buyers are back on the fence waiting to see if home prices will stabilize or take another dip.
That being said, there has been a slight increase in market activity following tax season and spring break vacations. Stay tuned to www.lakehodgestolakepowayhomes.com for more news on market trends. For a complementary market analysis on your neighborhood, contact us today!
For the full UT article click here: http://www.signonsandiego.com/news/2011/apr/13/dataquick-san-diego-home-sales-weak-march/ or see below.
DataQuick: San Diego home sales 'weak' in March
March home sales in San Diego County were weak and prices fell, heavily influenced by the absence of a government tax credit that drove buyers to the market one year ago and tight lending rules.
In March -- traditionally the start of the buying season -- the region logged 3,063 sales of all home types, down 5.1 from last year, according to figures from DataQuick Information Systems on Wednesday. Combined sales were up 31.5 percent from February, which is typical because the average increase between those months is 37.3 percent, said DataQuick analyst Andrew LePage.
Prices followed the same path as sales in March. The median price for all home types in March was $325,000, up 5.5 percent from February but down 1.5 percent a year ago.
Year-over-year decreases in both sales and price could be attributed to the lack of a homebuyers' tax credit and consumers waiting on the sidelines for confirmation that prices have really bottomed out, LePage said.
"They also want to see the economy stronger," LePage said. "...Sales (in March) were weak."
Bob Kevane, president of the San Diego Association of Realtors, agreed the absence of a tax incentive this year was a big factor. Last year, homebuyers rushed to make the April 30 deadline to take advantage of the benefit, artificially stimulating the market.
He says the market did pretty well despite its incentive, which may hint that the market is stabilizing, he said.
"I think prices and sales are going to remain flat," said Kevane, who has been echoing those thoughts since the start of the year.
Other highlights from this month's DataQuick report:
--The share of absentee buyers in March dropped to 26.4 percent in March from 28.3 percent in February. That percentage is still historically high and could have been influenced by the infusion of more traditional buyers.
--The percentage of cash buyers in the San Diego market decreased slightly to 29.1 percent in March from February's 30.5 percent, the peak for the region.
--The percentage change in the median home price for the last three months on a year-over-year basis has been negative.
Southern California roundup
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All homes
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# sold Mar -10
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# sold Mar -11
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Pct. Chng
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$Median Mar 10
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$Median Mar -11
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Pct. Chng
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Los Angeles
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6,747
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6,590
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-2.30%
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$329,000
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$320,000
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-2.70%
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Orange
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2,652
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2,615
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-1.40%
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$432,000
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$430,000
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-0.05
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Riverside
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4,156
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3,843
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-7.50%
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$198,000
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$198,000
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0.00%
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San Bernardino
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2,955
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2,544
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-13.90%
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$152,000
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$150,000
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-1.30%
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San Diego
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3,227
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3,063
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-5.10%
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$330,000
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$325,000
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-1.50%
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Ventura
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739
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757
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2.40%
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$375,000
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$349,000
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-6.90%
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SoCal
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20,476
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19,412
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-5.20%
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$285,000
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$280,500
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-1.60%
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Source: DataQuick, DQNews.com
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