Monthly Indicators | March 2016
Negative housing headlines should be read with calm or skepticism, not alarm. National housing trends, like the steady rise in home prices and decline in inventory, should certainly be observed with care, but tracking wider economic conditions is also necessary. Buyers want to get into the market, but unlike the rising-price sales environment of ten years ago, people are not diving headlong into risky mortgages or uncomfortable situations. This carefulness should be celebrated, not feared.
What to Watch
Employment figures are positive, wages are going up and employers are hiring. Consumers are holding for the right deal, even in the face of extremely low mortgage rates. As seller and builder confidence increases, we should see more activity in Q2 2016. The second quarter tends to rank as the best time to list a home for sale. But if inventory stays low, it will be difficult to sustain sales increases in year-over-year comparisons. Prices are seemingly not so high as to stall the market completely. Demand is present but an abundance of choice is not, and therein lies the rub.
Monthly Snapshot – February, 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 – March 17, 2016
The benchmark 30-year fixed-rate mortgage rose 6 basis points to 3.93% this week while the 15-year fixed-rate mortgage rose 7 basis points to 3.17%.
Median Sales Price – February
Point at which half of the sales sold for more and half sold for less, not accounting for seller concessions, in a given month.
Inventory of Homes For Sale – February
The number of properties available for sale in active status at the end of a given month.
Days on Market Until Sale – February
Average number of days between when a property is listed and when an offer is accepted in a given month.
Housing Affordability Index – February
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 March 5, 2016. All data from Sandicor, Inc. Powered by 10K Research and Marketing.
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Laura Sechrist Molenda