(SanDiegoRealEstateBuzz) – The weather is heating up, and so is the San Diego real estate market! It looks like we might be in for a hot summer, with home sales on the rise and the number of homes under contract increasing in May, while average days on the market continue to fall. San Diego home values are kicking into high gear as well, with prices on the upswing — all boosted by lower interest rates. As we enter the summer season, this healthy housing market continues to offer opportunities to both home buyers and sellers.
San Diego Homes For Sale, Under Contract and Sold
The number of homes sold in May of 2017 increased over the number of homes sold in the previous month, with 3064 April sales increasing to 3433 sales in May, a 12 percent change. Home sales also increased almost 1.9 percent year-over-year, rising from 3369 sales in May of 2016. The amount of pending sales (homes under contract) also increased slightly from April to May.
Inventory increased from April to May, as well, from 4502 to 4982, or an increase of 10.7 percent. This figure does represent an almost 15 percent year-over-year decrease, with 5854 properties on the market in May of 2016; however, current inventory still provides plenty of variety and choices for home buyers. Will inventory and sales continue along this upward trend, as they typically do during the summer months?
A Drop in Average Days on the Market
The market appears to be heating up, as average number of days on the market showed a downward trend, from 30 days in April to 29 days in May for detached homes. For attached homes, days on the market decreased from 23 to 20 from April to May. Shorter times on the market indicates a robust amount of home buyers in the San Diego housing market.
San Diego Home Values
From May to April, the median San Diego home price rose by almost 3.3 percent, increasing from $595,500 in April to $615,000 in May for detached homes. Year-over-year, detached homes increased in value from $570,000 in May 2016, a change of 7.9 percent. The median price of attached homes rose as well, gaining almost 1.9 percent from $387,750 to $395,000. This represents an increase from a median price of $380,000 in May 2016.
These increases are significant, and indicative of an overall upward trend in the San Diego real estate market.
These market trends are in play within the backdrop of interest rates that remain competitive. Rates dropped slightly over the last month, from 3.95 percent in April to 3.93 percent in May. However, the current rate reflects an increase from May of 2016, when interest rates were at 3.6 percent.
San Diego Real Estate Market Trends Summary
In conclusion, last month's numbers reflect a thriving real estate market that continues to grow. With home prices and sales on the rise — and average days on the market and interest rates on the decline — the San Diego real estate market remains healthy, offering plenty of choice and opportunity for both home buyers and home sellers.