January 2014 San Diego Real Estate Market Update
Promising Results Expected In Real Estate Markets Nationally In 2014
On the national level, the end of 2013 brought stability to the marketplace as a whole. While analysts are still compiling country-wide figures for the month of December, November saw continued year-over-year improvement in median real estate values, even with the total number of sales dropping from the month before. According to Lawrence Yun, the chief economist for the National Association of Realtors, “Although the final months of 2013 are finishing on a soft note, the year as a whole will end with the best sales total in seven years.”
Despite many major metropolitan areas reporting slower gains as the year wrapped up, the NAR anticipates seeing consistent growth throughout 2014. According to their Economic Outlook for January, continued recovery will mean more consumers being in a position to purchase property during the coming year. This fact, coupled with the rapid price appreciation seen in 2013 and currently higher interest rates, encouraged Yun to comment that healthy, steady growth is expected throughout the new year.
For many, the final weeks of 2013 brought further encouragement that progress will continue to be made in the real estate market during 2014. Mel Watt, the new head of the Federal Housing Finance Agency recently announced that planned fee increases to federally-backed mortgages which were set to take effect in April will be delayed and potentially even cancelled. These increases had many in the industry worried that the thousands of dollars in additional fees that some home buyers would incur could negate the market's positive momentum.
Holiday Season Responsible For Mixed Results In The San Diego Real Estate Market
Locally, December brought a seasonal slowdown to the San Diego real estate market. As homeowners and potential buyers around the area prepared for the holidays, real estate took the back burner to family time, gift giving and celebrations for many. The average number of active listings in the marketplace dropped 6.8% to 4,352 during the month of December, although that drop is notably lower than the 9.1% decrease seen in December 2012. Despite the lower number of properties on the market, the number of single-family home sales in December increased slightly from the previous month to end up at 1,613.
Even though average interest rates had dropped in both October and November, December saw this figure climb back up to 4.52%, one of the highest monthly averages of the year. Many real estate experts attribute these higher rates as a significant factor suppressing sales during the last month of 2013.
Luckily for many home sellers, these higher interest rates and the slow holiday season didn't hurt home values. The median price of San Diego homes for sale that closed during the month of December rose to an impressive $478,000, one of the highest periodic figures of 2013.
San Diego Recent Real Estate Market Sales & Statistics
Total Active & Sold Listings
Average Days On Market