Here’s what the latest numbers tell us about the North San Diego real estate market.
What’s going on in our North San Diego County real estate market? Today I’m sharing the latest data from the end of February, along with some thoughts on how the coronavirus is impacting the market. It is important to point out that this data is through February and the video was recorded around 3/20/20. Our current market is highly volatile and may have changed since recording this. If you have ANY questions about your specific situation please call or email for the most up to date information..
Inventory has gone down dramatically year over year. In February 2019, there were 2,242 detached homes for sale, which was about three to 3.5 months’ worth of inventory—more than what we normally see. At the end of January of this year, that number dropped to 1,488 homes. At the end of February, it dropped even further to 1,477.
That’s a 35% to 40% drop. This means there aren’t a whole lot of properties for buyers to choose from. If you’re a seller and you price and market your property well, you should get a lot of traffic.
Part of the reason for this is interest rates. At the end of February 2019, they sat at 4.41%. At the end of January of this year, they dropped to 3.51% and then dropped even further last February to 3.3%.
In other words, if you used a conventional mortgage, put 20% down, and bought a home last year for the median price of $677,000, your monthly mortgage payment would’ve been $2,715 (excluding taxes and insurance). At the end of January 2020, when the median price was $742,750, you would’ve only paid $2,668. At the end of February, when the median price was $726,000, you would’ve only paid $2,543. With buyers being able to afford more, and everyone trying to take advantage of these low rates, it sped up the market.
To summarize, this is a great time to sell your home. In my area, homes are spending an average of just 30 to 35 days on the market.
How is the coronavirus affecting all of this? At the beginning of the month, my team and I were very busy, but things have slowed down since the situation intensified a couple of weeks ago. We’re in more of a volatile environment at the moment. Some of my home seller clients are holding off on listing, while others are moving forward. With rates this good and inventory this low, there’s a fair number of buyers on the market, so the data still says it’s a good time to sell.
The bottom line is this: Everyone is being cautious, but the market is still very favorable.
If you have questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to help.