US Economy Growing Thanks to Real Estate Gains
All across the United States, real estate markets are experiencing a demand for properties by buyers as the nation's economy continues to improve. According to the National Association of Realtors, the median age of inventory across the entire United States is 78 days – down 12.35% year-over-year and over 20% since the previous month
In addition to homes selling faster, there are still 15% less homes available on the market, despite growth this month of 2%. Expect to see some recovery in home values in a number of major markets and areas around the country as demand continues to grow.
A recent report prepared by the Federal Reserve showed moderate economic growth this year so far thanks to the fact that “residential and commercial real estate improved markedly,” and that “particular strength” was reported in a number of industries “tied to residential construction.”
San Diego Seeing Surge of Home Sales but Faces Lack of Inventory
While markets all over the nation are seeing growth in a healthy direction, very few areas are expanding at the rate which is seen in Southern California, especially in San Diego County.
The big breakout this month has been the number of home sales completed in March. With 3122 sales processed in March, San Diego has seen the largest number of sales in seven months, despite the current number of homes for sale being nearly 30% less than it was in August of 2012. March boasts a 34% gain in the number of sales from the February.
Despite an intense seller's market, home listings reported by the San Diego Association of Realtors in March increased only slightly to 4084 since January's recent-history low of 3938.
Thanks to the significantly increased number of sales and still-low inventory levels, the SDAR also reports that the current absorption rate of San Diego real estate is 39 days – the lowest it has been in many years.
According to real estate reporting firm DataQuick, all of Southern California saw an increase in real estate values in March. March's median price for condos and homes across the southern part of the state grew to $345,500 – a 56-month high. Also this month, the NAR reported that in San Diego, the median listing price has grown to $410,000 in March - up over 5% from February.
Based on the statistics from the San Diego real estate market, there is good potential for homeowners considering selling their properties in the near future. With such an increased number of sales, it is evident that buyers are still buying, and are becoming even more competitive as the market continues to recover.
San Diego Real Estate Market Statistics
The graph below shows the active number of homes for sale for the corresponding month.
This graph shows the number of closed sales for the corresponding month.
The absorption rate is the number of months it would take to sell all of the homes that are currently for sale if no new homes were to come on the market.
Interest rates are based on 30 year fixed mortgage rates.