The July 2018 North County and San Diego Real Estate Market Report shows inventory increasing for a third month in a row while sales continue to drop. Even with this slight growth in inventory, the market is still very competitive for home buyers. Prices continue to rise, and market times are short. Experts predict that demand will continue to outpace supply, and this will hurt San Diego County’s economic growth.
Continue reading July 2018 North County and San Diego Real Estate Market Report
The June 2018 North County and San Diego Real Estate Market Report continues to show a slight turnaround in the years-long trend of tightening inventory. As I noted last month, the number of homes for sale in San Diego and North County has been shrinking since 2015. Last month, year-over inventory in both markets finally increased. This month, we saw it continue to grow in North County and level-off countywide. This will be something to watch as the year progresses.
Statewide, we also saw a rise in inventory, but not across the nation as a whole. Experts are predicting home prices will continue to grow at double the pace of wages.
We have not seen enough of a shift to make any kind of major change in our market, but the lack of inventory is what has kept pressure on housing prices. If inventory continues to rise, this will bring more choices for home buyers and weaken home appreciation. Rising interest rates will also put pressure on home values.
Continue reading June 2018 North County and San Diego Real Estate Market Report
The May 2018 North County and San Diego Real Estate Market Report brings us a month of firsts. The median home price countywide hit its highest point ever at $575,000. That’s $15,000 higher than in March and 8.7 percent more compared to the previous year. North County also saw a new high with its median price increasing 7.4 percent over the previous year, hitting $644,500.
April’s other first was a year-over increase in new listings in both North County and San Diego County as a whole. We haven’t seen this happen since August 2016. This increase in new listings combined with fewer sales kept inventory levels from decreasing. They are still quite low at 2.1 months in North County and 1.9 months in San Diego County, but this is the first time inventory has not seen a year-over drop since 2015.
Continue reading May 2018 North County and San Diego Real Estate Market ReportRising interest rates have a significant impact on your mortgage payment and your ability to qualify for a loan. Whether you are looking for your first home or your fifth, you are probably going to need a mortgage to purchase it. The infographic below shows what your payment would be as interest rates increase.
Continue reading Interest Rate Impact
Countywide, August saw an upturn in pending and closed sales over the previous month. There was no change in the median sales price compared to July, but a 7.4 percent increase over the previous year. Inventory is staying tight with a scant 2.3 months’ supply of housing on the market.
Prices continue to rise throughout San Diego County and we are approaching the 2005 pre-recession median home price peak of $517,500. In fact, multiple zip codes throughout the county have met or exceeded their pre-recession peaks with many of those zip codes located in the North County Coastal area.
This is great news for those who are building equity, hard on those trying to enter the market, and scary for those who got hurt during the recession. But what do those numbers really mean? Housing affordability in San Diego County has dropped significantly since 2012, but even with significant price increases, it hasn’t changed much since 2014. This is because those price increases have not been adjusted for inflation, or changing incomes and interest rates. First American’s Economic Center has taken these factors into account in a recent report titled, First American Real House Price Index (RHPI).
The index set the RHPI at 100 in January 2000 and then compares those values to today’s numbers adjusting for income and interest rates. San Diego’s Real Price Index in April 2016 was 84.1. Recent events, like “Brexit,” have helped push down interest rates, increasing buying power even more. I’ll have our updated RHPI in next month’s San Diego County Real Estate Report.
Click on the links below to read the full housing statistics reports.
Continue reading July 2016 San Diego County Real Estate Report and Interest RatesSan Diego County jumped up to eighth position in realtor.com’s® 20 Hottest Real Estate Markets. That’s our best ranking in May since Realtor.com started comparing markets three years ago.
May’s market statistics certainly support that hot ranking. Countywide, the median sales price increased 7.9 percent compared to the previous May and the supply of available inventory fell to a meager 2.1 months.
This is wonderful for San Diego County home sellers, but rising prices are making it difficult for buyers. The California Association of Realtors reports that only 28 percent of households could afford the median priced home in the first quarter of 2016. With home prices continuing to rise, that number will most likely drop even lower.
See below for today’s interest rates.
Click on the links to read the full housing statistics reports.
Continue reading June 2016 San Diego County Real Estate Report and Interest RatesSan Diego County home prices continue to recover, but still have not reached their 2005 peaks according to CoreLogic and reported in the Union-Tribune.
March brought more listing and sales activity compared to February, but the continued low inventory and rising prices are keeping the total number of sales low for what is normally a busy time of year.
San Diego County saw a year-over median price increase of 6 percent with prices reaching $485,000. In North County the median price was $537,000 with a year-over increase of 4.1 percent
See below for today’s interest rates. Click on the links to read the full housing statistics reports.
Continue reading April 2016 San Diego County Real Estate Report and Interest RatesAlthough North County saw a drop in the median sales price compared to January, and San Diego County as a whole was mostly flat, the San Diego County real estate market continued moving upward with healthy year-over price increases.
As is typical this time of year, there were more new listings on the market in February, but the number of homes going under contract, or pending, also increased. This is keeping the inventory hovering at a painfully low two months’ supply. Most experts expect to see six months’ supply in a healthy market.
The continuing low interest rates, low resale inventory, and lack of new homes being built in San Diego County has created a housing shortage. This lack of available housing is keeping upward pressure on home prices and rents. We’ve seen an increase in the number of homes being built in the county, 25 new projects this year according to the Union-Tribune. It’s still not enough to meet demand, and many of those homes are in a price range that most buyers can’t afford.
See below for today’s interest rates. Click on the links to read the full housing statistics reports.
Continue reading March 2016 San Diego County Real Estate Report and Interest RatesSan Diego County real estate looked strong in January with 10.5 percent year over median price increases for North County and 7.5 percent increases countywide. Interest rates continue to remain below 4 percent for many types of loans.
San Diego was ranked number five on the list of realtor.com’s® 20 Hottest U.S. Real Estate Markets in January 2016. It doesn’t look like this is going to change in the near future. January saw increases in the number of pending sales compared to both the previous month and to January 2015.
Although there were many new listings in January, inventory supply is still under two months in both North County and in San Diego County as a whole. Most experts say four to six months of supply is needed for a balanced market.
See below for today’s interest rates. Click on the links to read the full housing statistics reports.
Continue reading February 2016 San Diego County Real Estate Report and Interest Rates