Sellers, your ship is finally coming in! For some sellers, especially those who are considering a subsequent purchase, it's already arrived and you might want to consider getting on board. The local market is exhibiting distinct signs of improvement. San Diego County is not alone—housing industry improvements are being reported across the nation.
Those of you who listed your home recently have already experienced the shift in the local market first-hand. Buyers are certainly feeling the swing--quickly learning they don't have the leverage they did just a few short months ago. In fact, the market feels very much like it did when real estate took off in the early part of this decade.
Inventory is well below normal levels and the competition amongst buyers is noticeably increasing. Nice properties that are priced well don’t stick around long, and often attract multiple offers within a few days on the market. It is now common for one of the first questions from the buyer’s agent to be “How may offers do you have?” when they inquire on any attractive listing.
Recent reports and articles indicate that this is not a local phenomenon, but in fact, the surplus of inventory that existed not so long ago is quickly disappearing across the nation. Pent up demand, lower prices and record-breaking interest rates are compelling drivers for sales. Rising rents are also making buying more attractive. Continued improvement in consumer confidence is likely to spur activity further.
Industry and government figures confirm that housing is recovering. The National Association of Realtors says more than 1.3 million previously occupied homes were sold from January through April, up 7 percent from more than 1.2 million a year earlier. The Commerce Department says 117,000 new homes were sold during the first four months of the year, up nearly 15 percent from 102,000 a year ago
In San Diego County, sales of detached homes in the month of May were up 24.9% per statistics from the San Diego Association of Realtors. Attached home sales rose nearly 11%. The percentage of homes on the market that are equity sales also appears to be trending upward, at 58% in April of 2012 over 52% in April of last year.
The median sales price in San Diego County has increased as well since January. The last time we saw any consistent upward movement in median price was back in the Spring of 2010 nearing the deadline for the Federal Tax Credit for first time home buyers.
Whether you are a buyer or a seller, having accurate and up-to-date understanding of the current and local climate of the market is essential, and timing can make a world of difference. Now would be a good time to examine your goals and share them with your Realtor. Call me. I'm happy to help.