From time to time, we like to bring you outside expert opinions on subjects that we are asked about. Many of Essential Concierge’s clients are either new to the area, need assistance with relocation or own a vacation home locally. A special thank you to Realtor, Lisa Golden for supporting our readers with a summer market update.
Summer is here and the San Diego real estate market is as hot as ever! Property values have grown in the first half of 2016 and indicators point to steady growth for the near future. The latest national forecast from Corelogic indicates that the US economy will grow 2-3 %, mortgage rates will increase a modest .05% and home prices will increase 4-5% over the next 12 months. Overall the outlook for San Diego is looking good as well, as we are seeing many more home sales, new development and higher prices in the first half of this year.
According to the San Diego Association of Realtors pending sales for detached homes in San Diego County were up 12.7% in May from the same period last year, with the median sales price up 8.6 % to $570,000. Inventory decreased 14.5% and remains one of the driving factors for the rise in prices and decreased days of the market, now down a whopping 20.5% according to SDAR. As a result, we are now seeing multiple offers on properties with prices reaching 2007 levels in many communities in North County.
Should sellers be encouraged?
With continued low interest rates, the easing of credit and mortgage guidelines, steady job growth, higher wages and unemployment at 4.7%, we have very positive signs! There is currently an overall confidence in buyers and sellers to make a move now, while prices are back to where they may have purchased their homes and while interest rates are still low. We see new businesses, new home construction, shopping, office space and major developments popping up all around us. San Diego also remains one of the most desired places for international and investment buyers. This is another indicator that tells us we can sustain this level of growth for the near future. It’s an exciting time in San Diego’s real estate market. To learn more, contact Lisa directly at (858) 776-6995 or firstname.lastname@example.org.