Summer 2017 Home Buying Trends in San Diego
Southern California is notable for many things – first and foremost, the weather. Second, the amazing waterfront views and ample beaches. The culture is one of a kind, which is why the housing market in San Diego is an outlier compared to many other cities in America.
While it’s true that every market is different, San Diego typically defies all norms when it comes to real estate. This summer is no exception, here are the trends worth noting –
Buyers vs. Sellers
As mortgage rates start to creep upward, fewer millennials are taking the plunge to purchase, it’s a buyer’s market for 2017. Homeownership in San Diego County is currently at 57.9 percent, according to First Tuesday. While home purchasing increased around 2 percent over 2016, it’s still considered a bit stagnant.
Shop Your Rate
A savvy home buyer will tell you that shopping your rate can help you save thousands. With the Federal Reserve raising interest rates by 25 basis points this June, it means you’ll be expected to pay a higher mortgage rate. While still at a historic low, most homebuyers are searching for the best deal possible in 2017 amid that recent rate hike.
Look for a Bargain
If you’re looking for the home of your dreams, you’ll need to search a bit harder. While you may find your perfect home, it will cost twice as much. The median price of a San Diego County home went to $530,000 during the month of June. According to CoreLogic, the increase jumped 8.2 percent from the previous month of May 2017. If you compare this rate to the national average of $252,800, you’ll quickly realize that beautiful weather and outdoor living come at a premium.
What Gives with High Prices but Lower Demand?
The scenario—perhaps a bit of an oxymoron, it is one that defies logic. Inventory of single-family homes is expected to increase throughout 2020. However, with the rising interest rates, that additional inventory should drive down SoCal prices. Stay tuned to see what happens.
For more on this subject read our recent blog, “4 Reasons Why Home Sales Fall Through”
Thinking of buying or selling a home in the La Jolla area? As consistent top producers in real estate, Linda Daniels and The Daniels Group are your La Jolla housing specialists. Our team of local experts will ensure that you have a successful real estate transaction. Call us today at (858) 361-5561 or email us anytime by clicking here.