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.
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.
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.
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
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.