The October 2017 HomeDex™ Report with September 2017 statistics
is now available and I thought you would be interested to know…
“Every market is unique, yet the national sentiment has given rise to the notion that housing markets are stalling. Although desirous buyers are out on an increasing number of showings, there remains a limited number of desirable listings. And although mortgage rates have remained enticingly low, home prices have reached unaffordable levels for many new entrants into the housing pool at exactly the same time that established owners are proving to be less interested in moving.
Closed Sales decreased 13.8 percent for Detached homes and 9.8 percent for Attached homes. Pending Sales decreased 11.0 percent for Detached homes but increased 1.0 percent for Attached homes.
The Median Sales Price was up 7.0 percent to $679,000 for Detached homes and 11.1 percent to $439,000 for Attached homes. Days on Market decreased 10.8 percent for Detached homes and 14.8 percent for Attached homes. Supply decreased 30.0 percent for Detached homes and 18.8 percent for Attached homes.
Last year at this time, the national storyline was about how high demand was propping up sales and prices despite low inventory and months of supply. That has actually continued to be a familiar refrain for many months in 2017 and now for the past couple of years. But with the likes of Hurricanes Harvey and Irma, different employment outlooks, disparate incomes, varying new construction expectations and potential housing policy shifts, regional differences are becoming more prevalent and pronounced.”
Fun Fact: the highest North County sale for September 2017 was 118 11th St. in Del Mar, which sold for $3,3600,000! Click Here to view listing.
*For full Homdex Report Click Here
The September 2017 HomeDex™ Report with August 2017 statistics
“August tends to mark the waning of housing activity ahead of the school year. Not all buyers and sellers have children, but there are enough parents that do not want to uproot their children during the school year to historically create a natural market cooldown before any actual temperature change. Competition is expected to remain fierce for available listings. Savvy sellers and buyers know that deals can be made well into the school months, as household formations take on many shapes and sizes. Closed Sales decreased 4.7 percent for Detached homes and 11.6 percent for Attached homes. Pending Sales increased 0.9 percent for Detached homes but decreased 0.7 percent for Attached homes. The Median Sales Price was up 8.9 percent to $690,000 for Detached homes and 4.8 percent to $435,000 for Attached homes. Days on Market decreased 12.1 percent for Detached homes and 20.0 percent for Attached homes. Supply decreased 31.3 percent for Detached homes and 23.5 percent for Attached homes. The prevailing trends lasted through summer. This was expected, since there have not been any major changes in the economy that would affect housing. Factors such as wage growth, unemployment and mortgage rates have all been stable. Every locality has its unique challenges, but the whole of residential real estate is in good shape. Recent manufacturing data is showing demand for housing construction materials and supplies, which may help lift the ongoing low inventory situation in 2018.”
For full Homedex Report Click Here
The March 2017 HomeDex™ Report with February 2017 statistics
is now available and I thought you would be interested to know
“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. Closed Sales decreased 1.8 percent for Detached homes and 11.0 percent for Attached homes. Pending Sales increased 5.1 percent for Detached homes but decreased 4.3 percent for Attached homes. The Median Sales Price was up 9.6 percent to $630,000 for Detached homes and 12.2 percent to $415,000 for Attached homes. Days on Market decreased 18.8 percent for Detached homes and 18.2 percent for Attached homes. Supply decreased 30.8 percent for Detached homes and 37.5 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.”
For full HomeDex Report, click HERE.
What Lies Ahead for 2017 Real Estate Market In North County San Diego
San Diego North County housing market has seen strong gains in the past few years, and going into 2017 many wonder if that will continue or if we have hit our peek. Watch the video below as I explain three key influential factors that will shape the 2017 real estate market here in North County San Diego.
The November 2016 HomeDex™ Report with October 2016 statistics
is now available and I thought you would be interested to know
Happy November! I hope you are looking forward to a nice Thanksgiving holiday with the people that are most important in your life.
The October numbers are in for North County Real Estate, and October has proven to be an interesting month in terms of activity versus normal October or seasonal activity. We are seeing the trend of inventory levels subside due to fewer new listings and strong, but fewer, sales. However, Median and Average Sales Prices are abnormally high for this time of year – October is breaking 12 month records in these areas.
October posted the highest Median Sales Price for detached homes in North County, tying with May and June, our typical “Seasonal Peek” months. That represents an 11+% increase in Median Sales Price from October last year and the 12th straight month of positive year over year increases. Similarly, the Average Sales Price records are at the highest level all year – jumping a whopping 18.7% from October 2015 (Oct 2015 = $722K VS Oct 2016 = $856K) and continues the 9th straight month of increasing Average Price trend for North County Detached Homes.
The inventory levels in North County for Detached homes are at 2.6 Months, the lowest level since February 2016, a 16% decrease in Monthly Supply from October 2015. The number of closed sales are continuing about a 6-month trend of slowing down (which is seasonably normal). Similarly, new listings are also down 5% from last October and continuing a 5-month trend of fewer listings since April 2016.
Since the end of October, the country went through a pretty controversial election and the financial market’s response to the outcome is taking shape. Over the last week, there has been a major shift of investment funds out of bonds and into stocks, which have had a fundamental part (amongst a few other factors) in causing interest rates to increase around a half of a percent. Experts anticipate this rate increase trend to continue through the spring as confidence flows into the stock market and the Fed initiates their next rate rake, which could come as early as next month.
What does this mean for anyone buying or selling real estate right now?
First, if you are in the process of buying a home, it may be in your best interest to lock your loan rate. Surprises like higher payments are not something you want to experience in the middle of your transaction.
Second, it’s a bit early to tell how this all will play into the short and long term of our real estate market, but here is what we know: We know the value and price of the respective homes today and, although rising, rates are lower now than expectations for the near future. Higher rates can mean higher payments for buyers and with limited supply it may not make an impact on softening prices or curbing demand so waiting for the market to come down may not be a safe bet. If you are selling a home there is a chance that rising interest rates impact affordability, adjusting prices downward to compensate where demand will support the price, even though inventory levels are extremely low. The point is, even with uncertainty in the market, people’s lives must go on. Set realistic expectations and react on the information we know to be true today.
Home prices and market activity displays solid signs of a healthy market and interest rates are still historically low. There may be changes in the future, all of which we can handle, but right now, I believe is a great opportunity to take advantage of the market.
Fun Fact 1: In October, the Highest Sale in North County was Oceanfront in Encinitas, at 532 Neptune, which closed at $11.1MM and only on the market 28 days.
Here is a link to the full Details and Photos in the MLS Click Here to View Listings
Congrats to listing agent / broker DeeDee Kirsh at Coldwell Banker.
Fun Fact 2: The sale mentioned above was the highest sale in all of San Diego County in October
Fun Fact 3: Inventory of Attached Homes for Sale for October (489) is just about half compared to October of 2014 (952). Specifically, that is a 49% decrease in Inventory. Detached Homes Inventory for Sale is only down 27% compared to October 2014.