Healthy Gains Seen In Real Estate Markets All Across the Country
If national pending home sales are any kind of indicator, homeowners planning to list real estate for sale over the next few months are likely to find themselves in a pretty good position. In April, the Pending Home Sales Index – a tool used by the National Association of Realtors to assess upcoming market conditions – reach 112.4, its highest level in nearly a decade since peaking at 112.5 in May 2006.
In the opinion of Lawrence Yun, the NAR’s chief economist, some of the primary factors contributing to the current sellers’ market include still-low interest rates and a low level of supply that’s being outpaced by demand all across the country. Yun expects these strong pending home sales to hold steady throughout the summertime, as long as markets are able to maintain a continuous supply of new quality listings.
April also saw national home values rising as well, with real estate analytics firm CoreLogic reporting that the average sales price rose 2.3% from March to April, and that April’s average was 6.8% higher than April 2014. With such strong upwards movement, hopefully that momentum is going to continue for a good while to come. When asked his opinion of the market’s future, CoreLogic CEO Anand Nallathambi responded, “We expect continued price appreciation throughout 2015 and into next year.”
Summer Bringing Strong Results in San Diego Real Estate Market
Just like on the national level, the summer months generally kick off the busiest period of the year for San Diego real estate, and it looks like we’re already experiencing to a fairly strong start. The month of May ended up with an average of 6,749 listings on the market – an 8.8% increase from April and nearly 35% higher than the January’s low of 5,006. Although many savvy sellers are getting into the market now while competition is still relatively low, there’s likely to be enough demand from buyers to sustain conditions throughout the coming months.
One factor pointing towards the high level of demand being seen in the San Diego real estate market is recent sales numbers. In April, total sales throughout the San Diego region topped 3,000 – 3,126 to be exact – for the first time since August 2014, rising almost 77% since this past January’s low. If historic trends continue as expected this year, that number will probably increase further as we get closer to August and September.
Interest rates managed to average just 4.22% in May – the lowest since last November – which has helped to continue to fuel buyers eager to get into the market while prices are still comparatively reasonable. It’s no secret that these rates are likely to rise in the near future however – the average hasn’t dipped below 4% since May 2014 – but hopefully the current numbers will hold steady throughout the rest of the summer.
San Diego Real Estate Market Statistics for June 2015