More houses are selling in SD and new active listings are declining all around California-- which makes for little inventory and an aggressive atmosphere for buyers! Mortgage interest rates are still historically incredibly low which is undoubtedly a contributing factor to the increase in sales.
California Association of Realtors reported that the number of houses that sold in May 2017 in SD County was 16.1 percent higher than April 2017. That's a big jump heading into summer!
Another interesting fact about California real estate, is that the median sales price in our region in May 2017 was $605,000. That number is $15,000 higher than the previous month in April 2017, and $40,000 higher than in May 2016! Some may argue that many people are getting priced out of living in San Diego due to the higher prices.
I'm happy to answer questions about the home buying process that you may have. With this competitive environment working with a professional who has been in the business for 10+ years is imperative!
http://www.kpbs.org/news/2017/jun/20/despite-surging-home-prices-house-sales-16-higher/
Despite Surging Prices, Home Sales 16 Percent Higher Than Last Month
Tuesday, June 20, 2017
The number of single-family homes that changed ownership in the San Diego region in May surged despite a continuing climb in prices, reflecting a trend that occurred throughout the state, the California Association of Realtors (CAR) reported Tuesday.
The number of houses that sold last month in San Diego County was 16.1 percent higher than the month before, and 4.1 percent above the same period last year, according to CAR data. Sales totals have been constrained because of a lack of inventory.
The median sales price in the region in May was $605,000, or $15,000 above April. The figure was $40,000 above that of May 2016.
CAR reported the median sales price for a house statewide in May was $550,200, the highest in almost a decade. That's 2.3 percent above April and 5.8 percent more than May of last year.
Statewide sales totals were 5.4 percent higher from the month before and 2.6 percent from the year before.
"Mortgage rates dropping to the lowest level since November could have been a motivating factor for the sales increase in May," said CAR President Geoff McIntosh. "The low interest rate environment, however, may not last long as the Federal Reserve's gradual rate hike and plan to reduce its balance sheet will likely lead to higher rates, and could change the momentum of the market."
CAR Senior Vice President and Chief Economist Leslie Appleton-Young noted a disconnect between buyers and available homes for sale will continue to elevate prices and worsen the affordability problem.
New active listings around California declined for the 23rd straight month in May, falling 12.4 percent from a year ago. The drop, associated with May's heightened sales figures, will combine to make the inventory problem even worse, according to CAR.
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