Home prices continue to rise as inventory stays low
Low home inventories in the San Diego area propelled the median home price up to $455,000 in April 2015, an increase of 4.6 percent from the same time last year.
One can see how San Diego home inventories are not keeping up with demand if one compares monthly active listings to increases in pending home sales. The number of active listings has increased only 4.3 percent (5,912 to 6,166) between January 2015 and April 2015, but the number of pending home sales increased 59.3 percent (3,347 to 5,332) over the same period. There is still less than a two month supply of active listings in the San Diego area in May (6,500) according to the San Diego Association of Realtors, so expect home prices to keep appreciating.
Meanwhile, homebuyers may have a little bit more time to continue shopping before the Federal Reserve raises interest rates. Minutes from the April 28-29 Fed policy meeting, released May 20, revealed that only a few officials thought they would have enough confidence to raise rates by June.
Potential homebuyers will still find fixed mortgage rates near historic lows. 30-year fixed mortgage rates average 3.875 percent while 15-year rates average 3.125 percent.
For more information on a home purchase, refinance, or a reverse mortgage, visit our website at Aramco.Biz or call me at (877) 700-0942. This is Mehran Aram with today's ARAMCO Report.