Mortgage interest rates are on the rise across the US, and median home prices are on the rise across California. Typically, these conditions lead to a slowdown in home sales, but so far in San Diego, there hasn’t been any decline in demand. In fact, if you’re considering selling, now may be a great time to do so. Let’s take a look at what’s causing this trend and how long we can expect it to last.
The median sale price of a San Diego County home has risen by $25,000 over the last six months. But despite an increase in overall home cost, demand is steady. In fact, applications for a new home loan increased by almost 12% at the end of 2016, and although California saw a small dip in overall sales in April 2017, numbers came back up in May – closing the month with over 430,000 sales.
Why Buyers Continue to Purchase Homes:
Buyer demand remaining high can be attributed to two things; low housing inventory and a strong job economy. When inventory is low, there are more buyers looking for homes than there are homes available for purchase. That means buyer options are limited, and it takes longer for every buyer who enters the market to find a home that meets their needs. There’s also more competition, which drives up prices.
As for the job economy – the stronger it is, the more people buy homes. Why? Because when buyers feel confident in the job market and can depend on growing job opportunities, increased wages, and steady employment options – they are more likely to make big investments. San Diego had its 5th year in a row of job growth 2016 and celebrated low unemployment rates and high average salaries. All these things are key factors currently driving the market.
What to Expect When You’re Ready to Sell:
Since the job market is steady and shows signs of growth and there’s no indication that inventory will rise drastically, it’s likely that buyer demand and home sale stats will remain high throughout 2017. Furthermore, interest rates are not expected to rise above 5% in 2017, which may result in greater interest in the market as the economy improves.
In San Diego, the housing market continues to grow and improve due to expectations in career opportunities and the positive expectations from new home buyers. Are you waiting for the prime time to sell in order to get the best possible returns for your home? Now may be the time.