I’m back with your real estate market update. Our last update was from January, and since then, our year has gotten off to a brisk start. Let’s take a look at the numbers and find out how the market is doing.
When we look at detached homes across North County, as of the end of March, the average price has increased 15.7% year over year. Currently, the average sales price is at $917,000. The median sales price is $714,000, which is a 10% increase.
Prices are moving up rapidly, but what’s going on with inventory?
Inventory has been low for quite some time, but it is ticking up a little bit. Right now we have two months of inventory, which is up even from January. In my experience in working with sellers, I’ve seen that homes that are priced appropriately and marketed well are selling very quickly, especially at the lower and median price points. Even above that, homes are still selling relatively quickly, even though as prices go up, the number of potential buyers decreases.
Looking at the national level, one thing that caught my eye was that the pace of transactions was slowing down and that interest rates are going up. In the past real estate cycles, those have been leading indicators of a shift in the market. It’s too early to tell when it will happen, but we do know that it’s coming at some point.
If you’re thinking about buying a home, whether it be for downsizing or upsizing, now is a great time to do it. Additionally, it’s a great time for investors as well—take some money off the table from your sale and invest it in other properties and defer your taxes that way.
If you have any questions about real estate, please feel free to reach out. I’d be happy to chat with you.