Home sales and prices are rising nearly in sync in San Diego, even as the number of homes for sale shrinks.
That is all thanks to a resurgence of the move-up buyer, who had been stuck in place throughout the recession. San Diego's growing economy and job market are fueling the strength. The only thing holding it back is supply.
"While it's a welcomed sign to see the growth in housing demand continue, the lack of supply remains a concern," said the California Association of Realtors' chief economist, Leslie Appleton-Young. "The imbalance between the two sides not only intensifies market competition and pushes home prices higher, but also leads to housing affordability issues that could ultimately lower the homeownership rate if the problem persists."