Increasing Real Estate Sales

A time for fresh new rebirth and re-growth, and also a time for increasing real estate sales. The market in North County San Diego is in full swing with many buyers hitting the market looking for early season deals and we are noticing multiple offers, high traffic in open houses and generally a fast paced positive energy in the market.
February numbers as presented by the recent Homedex report were quite a bit surprising. In my experience I noticed prices and momentum picking up in January and February which felt like an incredible month for the market. The surprising aspect of the report was that median home prices for detached homes decreased about 3% when compared to the month prior, however, number of sales exploded by 22% and days on market decreased by 6 days to 34 days. This is indicative of the multiple offers and 1-2 week marketing times we are seeing on our listings right now.
In other news the FED met this last week and indicated that it would keep the interest rates the same until at least the June meeting, which I believe will continue to push more buyers into the market before then to avoid higher interest rates on their purchase. I anticipate the next couple of months to produce a high number of sales and post about a 5% increase in detached median home prices. I also anticipate an increase in inventory levels as prospective sellers realize the rising trend and try to cash in on higher prices by June if rates do increase. The buyer demand will subside briefly, and excess inventory will need to become more competitive in pricing to get the homes sold starting a slight contraction trend moving into the end of the year.
How does all of this affect you? If you have had any thoughts of selling now is the time, do not wait until May to get your house listed or you might risk the high part of the demand and then face additional inventory. If you are a buyer, you should weigh the benefits of a lower interest rate vs shopping when there is more inventory, less competition and possibly getting a slightly better price on the right home.
Here are a couple of highlights from this month’s Homedex Report
The median price for all North County home sales attached and detached decreased to $482,700 in February 2015, compared to $510,000 in January 2015.
Median price for detached homes in North County decreased 2.7 percent to $559,500 in February 2015 compared to $575,000 reported in January 2015.
Year-over median SFD price in North San Diego County decreased 0.89 percent compared to $564,500 reported in February 2014.
The number of sold units in North San Diego County for February 2015 was 632 units, an increase of 22.24 percent compared to January 2015.
Median days on market for North San Diego County SFD homes sold decreased to 34 days in February, compared to 40 days in January 20
The HomeDex affordability percentage for all homes in North San Diego County increased to 36 percent in February compared to 33 percent in January 2015.