With January and February already behind us, the first three months of 2013 are certainly shaping up to be interesting in regard to San Diego real estate. What is in store for March? Higher home prices and even less inventory are likely to be the main challenges for San Diego home buyers.

September has been a memorable month for the housing market as near record levels of investors and other cash home buyers was recorded. Continuing lower mortgage rates and an overall healthier housing market should also be noted. A rise in median home prices continues in the San Diego area, as economic recovery continues and the supply of available homes continues to shrink. Another reason for the rise is the decrease in foreclosed property purchases.

The San Diego housing market continued its slow return to normalcy during the month of June. Median sale prices reached a twenty month high, with indicators pointing to July offering yet another small climb. Why the climb? Higher demand is one reason. However, there are two other trends to consider and be on the lookout for during the month of July.