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HOW'S THE MARKET?
APRIL 2019 MONTHLY SNAPSHOT


   "Market Report"

For much of the country, the first quarter of 2019 provided several disruptive weather patterns that contributed to less foot traffic toward potential home sales. Coupled with low affordability, higher prices and an inventory situation in its infancy of recovering from record lows – not to mention several more days of wintry weather in April – slower sales persisted across most residential real estate markets. However, buyers are beginning to return in force this spring. For well-priced homes in desirable locations, competition is fierce.

Closed Sales decreased 2.1 percent for Detached homes and 12.1 percent for Attached homes. Pending Sales increased 10.7 percent for Detached homes and 5.2 percent for Attached homes. Inventory decreased 0.8 percent for Detached homes but increased 15.5 percent for Attached homes.

The Median Sales Price was up 2.3 percent to $655,000 for Detached homes but decreased 1.2 percent to $420,000 for Attached homes. Days on Market increased 23.1 percent for Detached homes and 26.1 percent for Attached homes. Supply increased 4.3 percent for Detached homes and 29.4 percent for Attached homes.

Although hiring and wage gains have been below expectations, the national unemployment rate held firm at 3.8 percent. A historically low unemployment rate can provide reassurance to wary consumers. But in order for sales to increase on a grand scale, buyers will need more spending power, or sellers will need to reduce prices to land where buyers are most active. Neither situation is likely to occur in 2019, and yet inventory is straining to keep pace in the most competitive price ranges.

Posted by Michael Barrow on May 20th, 2019 3:10 PM
HOW'S THE MARKET?
NOVEMBER MONTHLY SNAPSHOT

   "Market Report"

The booming U.S. economy continues to prop up home sales and new listings in much of the nation, although housing affordability remains a concern. Historically, housing is still relatively affordable. Although Freddie Mac recently reported that the 30-year fixed rate is at its highest average in seven years, reaching 4.94 percent, average rates were 5.97 percent ten years ago, 6.78 percent 20 years ago and 10.39 percent 30 years ago. Nevertheless, affordability concerns are causing a slowdown in home price growth in some markets, while price reductions are becoming more common.

Closed Sales decreased 19.4 percent for Detached homes and 20.3 percent for Attached homes. Pending Sales decreased 6.5 percent for Detached homes and 24.3 percent for Attached homes. Inventory increased 32.0 percent for Detached homes and 48.0 percent for Attached homes.
The Median Sales Price was up 1.6 percent to $635,000 for Detached homes but decreased 2.0 percent to $397,000 for Attached homes. Days on Market increased 9.1 percent for Detached homes and 16.0 percent for Attached homes. Supply increased 47.4 percent for Detached homes and 64.3 percent for Attached homes.

The Bureau of Labor Statistics recently reported that the national unemployment rate was at 3.7 percent. Low unemployment has helped the housing industry during this extensive period of U.S. economic prosperity. Home buying and selling activity relies on gainful employment. It also relies on demand, and builders are showing caution by breaking ground on fewer single family home construction projects in the face of rising mortgage rates and fewer showings.

Posted by Michael Barrow on December 21st, 2018 9:18 AM
HOW'S THE MARKET?
OCTOBER MONTHLY SNAPSHOT

"Market Report"

If the last few months are an indication of the temperature of housing markets across the country, a period of relative calm can be expected during the last three months of the year. A trend of market balance is emerging as we approach the end of 2018. Prices are still rising in most areas, and the number of homes for sale is still low, but there is a general shrinking of year-over-year percentage change gaps in sales, inventory and prices.

Closed Sales decreased 16.8 percent for Detached homes and 15.3 percent for Attached homes. Pending Sales decreased 4.7 percent for Detached homes and 6.5 percent for Attached homes. Inventory increased 28.8 percent for Detached homes and 38.0 percent for Attached homes.
The Median Sales Price was up 6.3 percent to $645,000 for Detached homes and 4.5 percent to $418,000 for Attached homes. Days on Market increased 9.4 percent for Detached homes and 11.5 percent for Attached homes. Supply increased 38.1 percent for Detached homes and 43.8 percent for Attached homes.

Stock markets experienced an October setback, but that does not necessarily translate to a decline in the real estate market. The national unemployment rate has been below 4.0 percent for three straight months and during five of the last six months. This is exceptional news for industries related to real estate. Meanwhile, homebuilder confidence remains positive, homeownership rates have increased in the key under-35 buyer group and prices, though still rising, have widely reduced the march toward record highs. 
Posted by Michael Barrow on December 3rd, 2018 1:10 PM
HOW'S THE MARKET?
SEPTEMBER MONTHLY SNAPSHOT
Buyer / Seller Market:

"San Diego Home Sales Drop to Lowest Level in 11 Years"

San Diego County home sales dropped 17.5% to the lowest level in 11 years for a September in the first significant sign of a slowdown in the market, real estate tracker CoreLogic reported last week.

In this past September, 2,942 homes SOLD in the county, down from 3,568 sale a year ago. It was the lowest number of sales for a September since just before the Great Recession when 2,152 SOLD in September 2007.

Most experts attributed the slowdown to a rise in mortgage interest rates, and the sale price reduction to potential buyers balking at higher monthly payments. The mortgage rate for a 30-year, fixed-rate loan was 4.78 percent at the end of September, according to Mortgage News Daily, up from 3.99 percent at the same time last year. That would make the monthly cost of a San Diego County median priced home go up by $268 a month.

Rising home prices throughout the year have been largely attributed to a strong economy mixed with strong competition for a limited number of homes for sale. However, the home inventory in September was one of the highest in years according to data from the Greater San Diego Association of Realtors.

Sales were down year-over-year across Southern California. Orange County had the biggest reduction in sales with 23.6 percent drop from the last year. It was followed by Los Angeles County, down 19.3 percent; San Diego County, down 17.5 percent; Ventura County, down 17.2 percent; San Bernardino County, down 16.4 percent; and Riverside County, down by 10.1 percent.
Posted by Michael Barrow on November 2nd, 2018 3:55 PM
How's The Market?
San Diego Market Report - May 2018



Just like last year at this time, prospective home buyers should expect a competitive housing market for the next several months. With payrolls trending upward and unemployment trending downward month after month in an extensive string of positive economic news, demand remains quite strong. Given the fact that gradually rising mortgage rates often infuse urgency to get into a new home before it costs more later, buyers need to remain watchful of new listings and make their offers quickly.

Closed Sales decreased 12.7 percent for Detached homes and 15.0 percent for Attached homes. Pending Sales decreased 0.2 percent for Detached homes but increased 2.1 percent for Attached homes. Inventory decreased 3.7 percent for Detached homes but increased 4.9 percent for Attached homes.

The Median Sales Price was up 6.4 percent to $650,000 for Detached homes and 7.3 percent to $421,000 for Attached homes. Days on Market decreased 7.1 percent for Detached homes but increased 10.5 percent for Attached homes. Supply remained flat for Detached homes but increased 6.7 percent for Attached homes.

Although home sales may actually drop in year-over-year comparisons over the next few months, that has more to do with low inventory than a lack of buyer interest. As lower days on market and higher prices persist year after year, one might rationally expect a change in the outlook for residential real estate, yet the current situation has proven to be remarkably sustainable likely due to stronger fundamentals in home loan approvals than were in place a decade ago.




Posted by Heather Tardanico on June 6th, 2018 1:00 PM
How's The Market?
San Diego Market Report - April 2018



Many sellers and builders are in a good position for financial gains, as the economy continues to favor putting existing homes on the market and building new homes for sale. We are finally beginning to see some upward movement in new listings after at least two years of a positive outlook. There may not be massive increases in inventory from week to week, but a longerterm trend toward more new listings would be a good sign. Low inventory should continue to create a competitive situation for buyers, causing price increases over the next several months.

Closed Sales decreased 7.8 percent for Detached homes and 7.1 percent for Attached homes. Pending Sales increased 1.6 percent for Detached homes but decreased 3.0 percent for Attached homes. Inventory decreased 5.4 percent for Detached homes but increased 8.0 percent for Attached homes.

The Median Sales Price was up 8.3 percent to $640,000 for Detached homes and 10.4 percent to $425,000 for Attached homes. Days on Market decreased 10.3 percent for Detached homes and 4.3 percent for Attached homes. Supply remained flat for Detached homes but increased 14.3 percent for Attached homes.

This winter and spring exhibited unseasonal weather patterns in much of the country. As the seasons change to something more palatable, wages and consumer spending are both up, on average, which should translate positively for the housing market. Being quick with an offer is still the rule of the day as the number of days a home stays on the market drops lower. If that wasn't enough for buyers to mull over with each potential offer, being aware of pending mortgage rate increases is once again in fashion.




Posted by Heather Tardanico on May 7th, 2018 1:28 PM
How's The Market?
San Diego Market Report - January 2018



Last year, U.S. consumers seemed to be operating with a renewed but cautious optimism. The stock market was strong, wages were edging upwards and home buying activity was extremely competitive. Not much has changed in 2018 in terms of those measures, yet there is a sort of seasoned prudence mixed into the high emotions that go with a major expense like a home purchase. We are now several years deep into a period of rising prices and low inventory. Those in the market to buy a home have caught on. As sellers attempt take advantage of rising prices, expect buyers to be more selective.

Closed Sales decreased 10.2 percent for Detached homes and 1.6 percent for Attached homes. Pending Sales increased 4.4 percent for Detached homes and 8.2 percent for Attached homes. Inventory decreased 23.2 percent for Detached homes and 8.1 percent for Attached homes.

The Median Sales Price was up 6.8 percent to $595,000 for Detached homes and 9.1 percent to $409,000 for Attached homes. Days on Market decreased 14.0 percent for Detached homes and 15.6 percent for Attached homes. Supply decreased 21.1 percent for Detached homes and 7.7 percent for Attached homes.

Whatever external forces are placed upon residential real estate markets across the country – whether they are related to tax legislation, mortgage rates, employment situation changes, new family formations, the availability of new construction and the like – the appetite for home buying remains strong enough to drive prices upward in virtually all markets across the country. New sales are not necessarily following that trend, but monthly increases are expected until at least late summer.



Posted by Heather Tardanico on February 6th, 2018 12:18 PM
How's The Market?
San Diego Market Report - December 2017



The number of homes for sale, days on market and months of supply were all down in year-over-year comparisons in a majority of the country for the entirety of 2017, as was housing affordability. And although total sales volumes were mixed, prices were consistently up in most markets. Buyers may not benefit from higher prices, but sellers do, and there should be more listing activity by more confident sellers in 2018. At least that would be the most viable prediction for an economic landscape pointing toward improved conditions for sellers.

Closed Sales decreased 14.9 percent for Detached homes and 12.0 percent for Attached homes. Pending Sales decreased 1.7 percent for Detached homes but increased 1.9 percent for Attached homes. Inventory decreased 27.8 percent for Detached homes and 14.3 percent for Attached homes.

The Median Sales Price was up 8.5 percent to $612,750 for Detached homes and 11.5 percent to $407,000 for Attached homes. Days on Market decreased 15.0 percent for Detached homes and 24.2 percent for Attached homes. Supply decreased 26.3 percent for Detached homes and 8.3 percent for Attached homes.

Unemployment rates have remained low throughout 2017, and wages have shown improvement, though not always to levels that match home price increases. Yet housing demand remained incredibly strong in 2017, even in the face of higher mortgage rates that are likely to increase further in 2018. Home building and selling professionals are both cautiously optimistic for the year ahead. Housing and economic indicators give reason for this optimism, with or without new federal tax legislation.


Posted by Heather Tardanico on January 10th, 2018 9:01 AM
How's The Market?
San Diego Market Report - November 2017

 

The facts of residential real estate have remained consistent in 2017. In yearover-year comparisons, the number of homes for sale has been fewer in most locales, and homes have been selling in fewer days for higher prices. This hasn't always been true, but it has been a common enough storyline to make it an overarching trend for the year.

Closed Sales decreased 14.3 percent for Detached homes and 18.0 percent for Attached homes. Pending Sales increased 2.6 percent for Detached homes and 14.3 percent for Attached homes. Inventory decreased 26.9 percent for Detached homes and 12.2 percent for Attached homes.

The Median Sales Price was up 11.8 percent to $625,058 for Detached homes and 11.6 percent to $407,500 for Attached homes. Days on Market decreased 10.8 percent for Detached homes and 17.2 percent for Attached homes. Supply decreased 26.1 percent for Detached homes and 7.1 percent for Attached homes.

New tax legislation could have ramifications on housing. The White House believes that the tax reform bill will have a small impact on home prices, lowering them by less than 4 percent, and could conceivably boost homeownership. The National Association of REALTORS® has stated that eliminating the mortgage interest deduction could hurt housing, as the doubled standard deduction would reduce the desire to take out a mortgage and itemize the interest associated with it, thus reducing demand. This is a developing story.

Current as of December 5, 2017. All data from Sandicor, Inc. Report © 2017 ShowingTime.




Posted by Heather Tardanico on December 8th, 2017 10:32 AM

How's The Market?
San Diego Market Report - October 2017




Supply will dip for the remainder of the year, but there are some hopeful signs that we may see a bump in the new year. To say that more inventory will immediately impact housing markets is premature, especially if affordability continues to drop and prices continue to rise. For the 12-month period spanning November 2016 through October 2017, Pending Sales in San Diego County were down 1.9 percent overall. The price range with the largest gain in sales was the $1,000,001 to $1,250,000 range, where they increased 20.0 percent.

The overall Median Sales Price was up 8.0 percent to $529,250. The property type with the largest price gain was the Single-Family Homes segment, where prices increased 7.2 percent to $595,000. The price range that tended to sell the quickest was the $250,001 to $500,000 range at 25 days; the price range that tended to sell the slowest was the $1,250,001 Or More range at 61 days.

Market-wide, inventory levels were down 22.9 percent. The property type that lost the least inventory was the Condos - Townhomes segment, where it decreased 10.5 percent. That amounts to 1.9 months supply for Single-Family Homes and 1.5 months supply for Condos - Townhomes.




Posted by Heather Tardanico on November 16th, 2017 10:47 AM

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