San Diego Housing Market Update-February 2017 Sales

San Diego Housing market update for home salesBelow is my monthly analysis of the San Diego housing market. It will show many different metrics to help us get an accurate “feel” for what is happening in our local real estate market!

The start of the year ushered in a wave of good news about a hot stock market, higher wages and an active home sales environment. At the same time, housing prices have continued to rise, and the low inventory situation and affordability crunch has been particularly hard on first-time buyers struggling to get into the market. Nevertheless, buyer activity is easily outpacing seller activity in much of the country, culminating in relatively quick sales and low supply. Demand definitely remained strong this month.

Activity Snapshot:

One-year change in closed sales

One-year change in median sales price

One-year change in homes for sale

-5.6%

+7.8%

-31.2%

Closed Sales decreased 0.8 percent for Detached homes and 14.1 percent for Attached homes. Pending Sales increased 1.5 percent for Detached homes and 0.2 percent for Attached homes. Inventory decreased 29.9 percent for Detached homes and 34.7 percent for Attached homes.

The Median Sales Price was up 7.9 percent to $565,000 for Detached homes and 10.0 percent to $385,000 for Attached homes. Days on Market decreased 13.6 percent for Detached homes and 17.1 percent for Attached homes. Supply decreased 29.2 percent for Detached homes and 38.9 percent for Attached homes.

Unemployment has reached pre-recession levels, and Americans remain optimistic about finding quality employment. This matters because job growth and higher paychecks fuel home purchases. Unfortunately, that won’t matter for potential buyers if price appreciation outpaces income growth and if mortgage rates continue their upward trend. Sellers are getting a generous number of offers in this market. The worry for sellers then becomes that there will not be a generous number of homes to choose from when they become buyers.

According to Bankrate.com, interest rates have continued to stay near the 4% level, despite the Federal Reserve Bank finally raising the fed funds rate to .75%. They are currently at 4.11% for a 30-year fixed loan (they were at 4.02% at this time last month). This is well below the historical average of 6% or so, which is great for home buyers. To calculate your potential mortgage payment or see what you can afford, go HERE.

The San Diego Association of Realtors analyzes housing market data for San Diego county every month. Below is their monthly report for home prices. The figures represents ALL property types.

San Diego Housing Market Stats February 2017

CLICK TO ENLARGE IMAGE

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com

 

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