Happy New Year everyone! 2016 is here, 2015 is over, and wow, did it finish with a bang! Real estate in San Diego has definitely improved from this time last year, following the same trend for the past 6 years.
It's still a great time to be a seller, even better than that it was the beginning of last year! Just look at the numbers: the median home price in San Diego has gone up $41k in the past 12 months, which is an 8.2% rise. Inventory is 17% less than what it was last year at this time, rates are still hovering just below 4% (enticing those buyers), it's taking an average of 43 days to sell a home (12% faster than last year), and 14% more homes sold this past December vs December 2014.
We have seen continued improvement for the past several years overall with San Diego real estate. How have we fared against national averages? A LOT better. But if you've been following the data, you know that San Diego Real Estate tends to outperform most of America, which is why when you're planning to invest in real estate, you know San Diego is a safer bet. Per the National Association of Realtors data, nationwide sales are down 3.8% (San Diego is up 14%!) and values are only up an average of 6.3% (versus the 8.2% in San Diego County).
How will 2016 look? Well CAR, California Association of Realtors, predict a steady rise in property values for San Diego for 2016. Affordability is at an all-time low, and the Feds have announced they are planning 2-3 rate hikes this year (depending on the market), so we will see how this plays out over the year. Bottom-line, if you are planning to sell, now's a great time to do it! If you are planning to buy this year, rates are still around 4% and with the rate hikes planned and prediction in prices increasing, best to do it now rather than later in the year. To find out more about buying or selling your home contact, San Diego real estate specialist, Josh Sloan at (858) 240-5659.
Here's some interesting stats from the California Association of Realtors:
In 2015, the net cash gain to sellers is the highest it's been since 2007 (about $120k vs $100k last year and $180k in 2007). The average number of years sellers in 2015 owned their home before selling is 10 years, which is the highest it's been in the past 30 years (in 2014 the average was 8 years, which is the previous record). So if you are buying, based on these statistics, conservatively plan to hold onto your home for around 8-10 years if you want to realize a substantial equity gain.
San Diego Real Estate Market Statistics for January 2016