Inventory Levels Increasing but Still Lacking Across the US
Spring is normally a prime time for buying and selling real estate. Following the slow winter season, pleasant weather popping up across the nation helps the market rebound from its annual slump. According to the National Association of Realtors, 2014 has been no exception.
In fact, the average number of properties on the market has increased by 9.5% compared to March 2013 figures. Home values are up across the country, too. The median home listing price has increased by 5.3% since last spring, representing healthy growth, especially in areas not hugely affected by the housing crisis.
Despite these positive trends, year-over-year total sales figures have been lacking. In many areas, recent price jumps have made it more difficult for new homebuyers to purchase. Investors are also steering clear of the market as many of the best deals have already been taken advantage of.
Sales growth in the US real estate market is expected as we progress through 2014 as more inventory is added, giving eager buyers a bigger selection of quality properties to choose from.
Lower Interest Rates Contribute to Growth in the San Diego Real Estate Market
Locally, limited inventory has also contributed to sales figures that are lower than last year. The San Diego real estate market is showing positive growth, however, and 2014 has brought a steady increase in the number of completed sales. The 3,126 properties that closed in April represent a 76.7% improvement over the January low of 1,769.
Inventory levels have also continued to grow since January. Average numbers have climbed steadily each month from 5,006 in January to 6,749 in April. While this 34.8% growth is impressive, today's figures are still less than last October's peak of 6,802. Even with these numbers, the current supply of San Diego homes for sale is still near all-time lows.
While we're not seeing the frenzy present throughout 2013, buyers are still looking for attractive properties all over San Diego. These buyers are further encouraged by interest rates that have dropped over the past month. So far in May, the average rate is down to 4.22%, the lowest seen yet this year.
If rates continue to decrease, it's likely that the market will be filled with even more buyers ready to purchase properties as they come available. This is especially true of high-end residences where a small change in interest costs can make a huge difference – sometimes even tens or hundreds of thousands of dollars over the life of the loan.
San Diego Real Estate Market Statistics for May 2014