Drought may create seller’s market in San Diego
Uncertainty about water policy and the ability to obtain water connections for new developments could be stopping some builders from creating new homes in the western U.S., according to the National Association of Home Builders. Housing starts in the West fell for the third straight month in March 2015, down 19 percent, to an annualized rate of 201,000.
Only 278 permits for new single-family homes were granted in San Diego County in February 2015 — the most recent month for which there are official statistics.
Home sales in San Diego County are up however, according to CoreLogic. Last month 3,467 real-estate transactions closed in the county, a 13.4 percent jump from March 2014. Therefore existing homes are selling faster than new homes are being built.
San Diego County had less than a two-month supply of residential listings at current sales rates in March 2015. Historically, less than a three-month supply of listings could indicate a seller’s market.
If the drought is indeed the cause of builders’ reticence to build new homes, then the seller’s market might persist into the future.
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.