Markets Across the Country Need More Listings
Eight of last month's fastest-moving real estate markets may have been in California, but the rest of the country still saw some pretty healthy gains as well. On the national level, 40% of newly listed homes are selling within the first two months – up from last year and a whole world apart from how things were just a few years back. Lower-priced homes are moving the fastest, which goes along with fact that first-time millennial buyers are becoming a quickly increasing portion of the market.
But the US real estate market is in the same predicament as we are locally – more sellers are needed. Listings are getting more numerous, but not fast enough to keep up with demand. As such, competition from buyers is making prices rise. According to data from the National Association of Realtors, February saw the biggest home value increase in a year and was the 36th month in a row of year-over-year gains.
While this growth is nice in the short-term, it's not sustainable in the long run – especially as affordability continues to be a big issue for many buyers. Coupled with the interest rate hikes that are anticipated to come in the summer, growth could slow down to a more moderate pace if the supply of properties doesn't increase.
San Diego Real Estate Market Celebrating Great Numbers
Despite a somewhat sluggish first few months, the San Diego real estate market has really been on a strong upward trajectory over the past few weeks. So far in April, the average number of active listings is at 6,198 – the highest level so far this year.
It's not just listings that are up, either. Sales in March skyrocketed to the highest point we've seen since last June, finishing the month with 2,824 sold properties. This represents a 36% increase from February's total of 2,073 homes.
Many experts attribute this recent upturn to the steadily improving California economy and the increase in job growth – especially in the coastal regions. Locally, the market is definitely improving, but we still need more sellers to keep up with the steady demand coming from eager buyers. Active listings peaked last September at 8,366 before falling below 6,000 in January.
Listings and sales aren't the only things going up in the local market. Home values are also on the rise, with the median sale price of a single-family home increasing to $520,000 in March after straddling the $500,000-mark for the past three months.
While sellers are reaping tons of benefits from the growing market, things aren't looking too bad for buyers, either. The supply of properties is growing, and interest rates are continuing to shrink, averaging just 3.82% so far in April. Although these cheap mortgages won't last forever, we're hoping to see rates stay before 4% for at least a couple of months longer.
San Diego Real Estate Market Statistics for April 2015