San Diego Home Prices Rose in June

The median price for San Diego home sales and condominiums reached $450,000 in June, up 8 percent from a year ago and nearing a seven-year high.

While home sale values continued their rise over the past year, the increase was less than the 24.1 percent jump from June 2012 to June 2013, according to real estate tracker Data Quick . A major factor was the slowdown in investor-related sales of foreclosure and short sale properties.

The trend line for the months ahead could bode well for individual homeowners as the real estate market returns to a more traditional balance. More owners of San Diego homes and condominiums now have mortgages that are above water, while the number of San Diego foreclosures is expected to shrink and interest rates are likely to tick upward,  potentially discouraging investors who have played a major role in San Diego real estate over the past decade.

Statewide, single-family home and condominium sales during June increased 2.8 percent while sales of distressed properties fell 9.1 percent. “June marks the sixth consecutive month that sales have been lower on a year-over-year basis,” said Madeline Schnapp, Director of Economic Research for real estate tracking company PropertyRadar. “The lack of distressed property inventory and rapid increase in median prices has definitely taken a toll on demand.”

Inventory, while still tight, is increasing. In the first six months of 2013, there were 46,146 active listings in San Diego County, up from 26,294 last year, the San Diego Association of Realtors reports. This month, inventory surpassed 8,000 for the first time since February 2012.