26 Mar Condo Prices Set New Highs in February
Both the median and average prices for condos set new all-time highs in February. It was also the fifty-seventh month in a row the median price has been higher than the year before.
The median price for single-family, re-sale homes was higher, year-over-year, for the fifty-seventh month in a row.
Home sales eked out 0.5% gain compared to last February.
Condo sales, on the other hand, were just over one-third the monthly average since January 2001.
The inventory of actively listed single-family, re-sales homes in San Diego County continues to define the market. There were 3,587 homes for sale as of March 10th. The average number of homes for sale each month since January 2001 is almost 8,582-so we are very short on housing inventory!
The sales price to list price ratio jumped to its highest level since last July: 98.2%.
As you may have heard, on March 15th, the U.S. Federal Reserve increased the Fed Funds Rate by 25 basis points bumping it to between 0.75% and 1.00%. Fed officials expect to hike rates by 25 basis points two or three more times in 2017.
While the rate increase indicates a strong economy, it will mean higher interest rates for mortgages.
A small increase may not sound like much, however, when interest rates increase by just one-half of one-percent, for example, the Buyers monthly mortgage payment goes up by 10%-permanently.
With San Diego home prices in their 4th straight year of significant price increases, the lack of affordability is a real concern here.
If you are thinking of buying a home this year-don’t wait!
The Fed’s future rate increases-coupled with escalating home prices, will likely make it increasingly more difficult to afford the home you want.
The good news is, we have several great low down payment loans available that require between zero and 3.5% down payment.
If you are planning on selling your home soon-you could not have picked a better time!
Prices are up-rates are still near historical lows, and the future rate increases could soften prices-due to lack of affordability.
Please feel free to call me if you would like an accurate evaluation of your home, since the market prices have changed, or if you would like to discuss some strategies on ‘how to leverage’ the market in your favor-whether you are buying or selling.
You can reach me on my cell number # 858-336-1114 or email: [email protected]