Market Update – Buying & Selling Today – It’s Monday, hopefully you had a relaxing weekend. As we start another work week I wanted to briefly reach out to everyone with a quick market update. This morning I was speaking to a client I just sold a home to here in the North County. She had a question for me about her ‘timing’ as it related to selling and deciding purchase a larger home. With interest rates still at record lows and inventory at ‘decent’ levels, deciding to sell and purchase a new home now was a good decision for her. Now, not be a Mr. Negative, this isn’t the case for everyone. She sold in a premier community and moved out to a rural area. The home she sold I was able to get top dollar
for. There is little on the market there and she had a premier unit, selling it quickly at a record price was a breeze . . . and I’m a great agent!
California home sales lost momentum in May, falling from both April and a year earlier as demand fell. Even with rates staying well below forecasts it and inventory levels holding, the expected gain(s) have fallen short. The benchmark Costal North County communities are showing some weakness – this is the first sign in almost 6 years. Cardiff showed a median single-family home price of $914,250, down 16.9% although attached homes (condos/townhomes) showed a substantial gain, leaving the combined average down 12.9%. Cardiff is usually one of the strongest areas in all of San Diego.
Move slightly up the coast to Carlsbad and the Aviara and Southwest sections of that area are doing to opposite. Single-family home sales are down only 0.2%, condos/townhomes are up 12.3%, with an average single family home price at $ 797,500.00. This is a very clear example of rate(s) and the ability to borrow. If borrowers can get into a new home without facing a ‘Jumbo Mortgage” that a huge savings. The average buyer in these areas typically puts 30% down. Today the spread on conforming high-balance and jumbo loans is roughly 1.0 basis point – that’s enough to either make a deal or break it.
Where I am going with this is simple – It’s always a great time to buy a new home or sell and move up.
You can never go wrong with San Diego Real Estate. Understanding your ability to qualify and what your budget will allow are paramount. Knowing that buying a home is exactly that -it’s buying a home, not an investment based yield. If you’re looking for a quick payday call a stock broker. If you’re considering a new home or listing your current home, then call me. My goal is that I provide each of my clients the best, real-time data to help them understand what the next 12 months as
well as the next 12 years may look like.