Monthly Indicators | July 2016
Even as prices rise in many communities, homes are selling faster now than they have in the past several years. This creates a situation where buyers need to move fast in order to secure homes, and they may have to pay more for them. While increasing prices generally coax more selling activity, there has been some hesitancy among potential sellers who worry that they will not be able to buy a desirable and reasonably priced home once they sell.
What to Watch
Low housing supply has already prevented an outright national boon in sales activity, despite a continuation of near record-low mortgage rates and an unemployment rate under 5.0 percent deep into 2016. The issue is not purchasing power. Many areas are falling behind last year’s closed sales totals simply because of lack of available inventory. As this continues, higher prices may put a deeper squeeze on the current buyer pool.
Monthly Snapshot – All Properties
Residential real estate activity in San Diego County, comprised of single family properties, townhomes and condominiums. Percent changes are rounded.
Weekly Mortgage Rate Analysis – August 4, 2016
The benchmark 30-year fixed-rate mortgage fell 7 basis points to 3.56% this week while the 15-year fixed-rate mortgage dropped 6 basis points to 2.83%.
Median Sales Price – July
Point at which half of the sales sold for more and half sold for less, not accounting for seller concessions, in a given month.
% of Original List Price Received – July
Percentage found when dividing a property’s sales price by its original list price, then taking the average for all properties sold in a given month, not accounting for seller concessions.
Inventory of Homes For Sale – July
The number of properties available for sale in active status at the end of a given month.
Days on Market Until Sale – July
Average number of days between when a property is listed and when an offer is accepted in a given month.
Housing Affordability Index – July
This index measures housing affordability for the region. An index of 120 means the median household income is 120% of what is necessary to qualify for the median-priced home under prevailing interest rates. A higher number means greater affordability.
The San Diego Association of Realtors
Market Data current as of August 5, 2016. All data from Sandicor, Inc. Powered by 10K Research and Marketing.
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Laura Sechrist Molenda