Nationwide Pending Home Sales, Economic Conditions on the Rise
Thanks to the continually improving economy, a greater number of homes available, and still-attractive interest rates, real estate markets all across the country have seen an uptick in the number of pending home sales.
Data from the National Association of Realtors showed that the Pending Home Sales Index (PHSI) increased by 3.3% in July to end the month at 105.9 – its highest level since August 2013. The PHSI measures the ongoing strength of the market, tracking how many properties go under contract. This can be an effective indicator of how sales growth is likely to look in the coming months.
In others news that highlights the increasing strength of the real estate market, commercial real estate growth is expected as we progress towards the end of 2014, thanks to strong second quarter economic growth and higher job creation results. According to economy experts with the NAR, this is an indication that the real estate market will likely be able to sustain healthy growth, even as interest rates eventually rise.
San Diego Real Estate Market Holding Steady
After a small, but noticeable, decrease in the number of sold San Diego real estate listings between June and July, August figures show the market is holding its ground and could be poising for more growth soon.
In its eighth month of continued increases, the number of actively listed San Diego homes for sale grew slightly in August to an average of 8,366 properties –a small 0.5% increase from July. The number of transactions completed during the month held steady as well, dropping only half of a percentage point from previous figures.
While July saw a small spike in the cost of residential mortgages, August's average interest rate retreated down to 4.27% - more in line with what we've seen throughout most of the summer, and lower than this time a year ago. Meanwhile, the median sales price for San Diego real estate remained above $500,000 for the third month in a row. That important milestone was broken back in June for the first time since the market began its recovery from last decade's downturn.
Thanks to the country's continued economic growth and job creation, experts feel that homeowners are feeling more confidence with making major real estate purchases. This means that a trend reversal could be on its way, with sales growth once again likely in the near future.
San Diego Real Estate Market Statistics for September 2014