What’s happening now in our north San Diego County market, and how do current statistics compare to those from the recent past? Let’s dive right in.
To kick things off, we’ll consider the median home price of detached homes in our area. Since December 2017, when the median price was $685,000, we saw a 5.8% increase in this area year over year. That said, appreciation rates have now begun to stagnate, meaning our market is evening out.
Moving on, the next statistic we should consider is the average days on market—in other words, the amount of time it takes homes to sell. Detached homes in our area spent an average of 36 days on market in December 2017. One year later, the average days on market rose by 25%, meaning that homes took an average of 45 days to sell when listed in December of last year.
But what about the amount of available listings, in general? To assess this, we must review another crucial statistic: supply. In short, a market’s months supply of inventory describes the amount of time it would take to run out of listings if no new properties came onto the market. In December, 2017, the supply of detached homes for north San Diego County was just 1.6 months. Eleven months later, the area’s supply rose to 2.9 months’ worth—a 45% increase—but ultimately dropped back down in December 2018 to just 2.3 months.
Despite this continued low inventory, the number of closed transactions has gone down since last year. 789 detached homes closed in December of 2017, but only 608 closed in December of last year.
To wrap up this update, let’s look at one final piece of data: interest rates. For simplicity’s sake, we’ll be examining the most common type of mortgage: a 30-year, fixed rate. The average interest rate was 3.94% in December 2017, 4.75% in November 2018, and then, interestingly enough, was at 4.51% in December of last year. Even after this slight dip, a majority of experts still believe we will see rates around 5% by the end of 2019.
Of course, market statistics will vary depending on the area and specific property type. I would be happy to share more information about your specific circumstances if you’d like to know more.
In general, though, our market is balancing out. It is more important than ever for sellers to put their best foot forward, while buyers can now enjoy greater leverage than was true in the recent past. All in all, now may be the perfect time to make a move in our market.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.