Confident Sellers Welcomed by the US Housing Market
According to March figures from the National Association of Realtors, there were 9.5% more homes for sale across the country last month compared to the same period in 2013. While this shows that more and more sellers are gaining confidence in the housing market's recovery, experts warn that current inventory levels are still dangerously low.
For sellers, this is a good thing.
While inventory levels remain low, there's more competition among buyers. As a result, home prices continue to rise. Despite many areas of the United States seeing double-digit value growth in 2013, the lack of quality properties is expected to keep sales values increasing steadily, at least through the remainder of the year.
Although the current momentum in the market won't be around forever, most professionals are not worried about prices dipping in 2015. Instead, the common consensus is that most locales will still see home values increase next year, albeit it as a much slow pace than we've experienced recently.
One thing that could get in the way of continued housing growth is interest rates. With the value appreciation of homes in the majority of areas, rising interest rates are making it more difficult for buyers, especially first-time homeowners, to afford to purchase. This could hasten a market slowdown. If interest rates remain steady or dip, however, buyer activity will likely gain additional momentum.
That doesn't necessarily mean that it's a seller's market right now.
Many buyers are taking the expected slow growth as a sign that this is the time to purchase, if they're able. By getting in the market now, these buyers are hoping to take advantage of the continued appreciation while it's still as historically high numbers.
Buyers on the Hunt for Quality San Diego Homes for Sale
Twelve months ago, the San Diego real estate market was in frenzy. Cash buyers were everywhere, snatching up the few low-priced, quality properties that came to market. Sellers were excited to receive multiple offers, often above their asking price, usually within the first few days that homes were listed.
Today, the average number of San Diego homes for sale has increased by 50% since last March, and despite continued competition among buyers for the best properties, the overall sentiment in the market has changed.
Much of last year's early gains were thanks to investors who recognized how undervalued the local real estate market had become. As prices rose, investors began shying away, having already picked much of the “low-hanging fruit”. Currently, the competition is mostly among individuals and families purchasing their first home or taking advantage of still favorable conditions to trade-up their current properties.
Although the market is no longer in a frenzy, it doesn't mean that things are looking down. In actuality, March figures show that the San Diego real estate market is continuing to improve from the seasonally-low holiday months. After dropping to just over 5,000 in January, the average number of properties on the market has rebounded by more than 22% to 6,125 last week.
Home sales are increasing too. In January, San Diego home sales dropped to 1,769, the lowest number in the past year. Over the following two months that number spiked by nearly 50%, reaching 2,646 in March. While those figures are expected to continue to fluctuate in the near future, they still look promising for local homeowners, as well as buyers looking to purchase in the near future.
San Diego Real Estate Market Statistics