To say the real estate market in San Diego is HOT, is an understatement. In just the past thirty days, the real estate market has really turned around in a night and day transformation. Many homes are now selling in a matter of days and the times of having MULTIPLE offers on each home are back. The Spring selling season is in full-swing, and with a bang--It truly is a seller’s market out there!
A positive trend is that there has been a 7% increase in the number of homes listed for sale, YTD. Overall, YTD closed sales are down 19% from last year and the average days on the market for a home has also decreased by 16%, which means they are selling a lot faster.
Throughout 2013 a main complaint was a lack of homes for sale, and the high number of all-cash investors scooping up properties. We saw a very significant activity in the real estate market from January 2013 through September of 2013 with September hitting a median home value of $419,000 for Attached and Detached homes combined in San Diego County.
There was a higher level of nervousness leading up to the end of 2013. I don’t think it can be understated that there was a palpable nervousness in the market with the governments bungling of the Obamacare rollout. In addition to a seasonal decrease in sales, people were very nervous about the overall economy and the sharp rise in home values, and the market needed a little break. Then from September 2013 through February 2014 the market cooled off, sales volume dropped and home prices moderated and even dropped for a few months, ending February 2014 with a median home price of $404,700.
Then came March. Although overall sales volume was down, the average median sales price for all homes, attached and detached increased 7% IN ONE MONTH up to $427,250. March sales of single- family residences, which excludes “attached” properties such as condos and townhomes, SURGED 32% over the previous month! With the median sales prices for single-family residences hitting $490,000 which is the highest point since December of 2007. To say there is a bull-market in San Diego real estate sales, is an understatement. If you are looking to sell your home, NOW is a perfect time.
Additionally, even though prices have increased, rates are at historic lows and buyers are entering the market because they are listening to the Federal Reserve Chair Janet Yellin telling us that interest rates will be increasing. They started last year with a measured decrease in their bond-buying activity, and have indicated they will continue to pare back. The only thing that has really kept interest rates from spiking higher recently is the instability in the Baltic region with Russia and the Ukraine. That is creating a flight to safety for investors into the US Treasury market. Now, I don’t see any quick resolution to this situation, so that will keep rates low for the time being. But if it is resolved peacefully, the proverbial “music will have stopped,” rates will increase, and you don’t want to be the one standing around without a chair.
Providing some relief is a 7% increase, YTD, in the number of newly listed homes for sale. I think once the numbers for April are released we will see further evidence of the HOT sellers market in San Diego.
For more information on The Aramco Group’s Real Estate call 877-700-0942.