26 May Median Home Price Nearing Record High
The median price for a single-family, re-sale homes in San Diego County is fast-approaching the record high of $585,000 set in November 2005. The median price is now only 3% from setting a new all-time record.
The median price for condominiums set a new record high in March 2017.
Home and condo sales were both lower in April compared to the year before. This was due to a lack of inventory, rather than a lack of interest from home Buyers.
Properties are being sold quickly. ‘Average Days on Market’, which calculates the number of days from when a property first goes on the market to when it enters escrow, was thirty-three days for homes compared to an average of fifty-seven days back in 2001.
So, if you, or someone you know has been ‘on the fence’ and waiting to buy a home-you may want to take action now-rather than waiting.
Here are a few reasons why:
Prices will continue to Rise
Core Logics most recent Home Price Index indicates that home prices have increased by 6.9% over the past year. The same report states prices wil continue to increase by 5% over the next year. The market bottom in home prices is long past so waiting no longer makes sense.
Interest Rates Are Expected to Increase
A recent mortgage market survey shows that mortgage interest rates for a 30-year fixed-rate loan, have remained close to 4% over the past few months. The consensus in the Lending industry however is that rates will likely increase by at least a half percentage point over the next 12 months. That may not seem like a lot until you consider the fact that for every one-half percent increase in rates-the Buyers monthly house payment goes up by 10%-for good!
Either Way, You are Paying a Mortgage
Some renters who have not yet purchased a home of their own, say they are uncomfortable taking on the obligation of a large home loan. The truth is, everyone should realize that unless you are living with family members-rent-free-you are already paying a mortgage-either your own or your landlord’s.
As a homeowner your monthly mortgage payment is actually a ‘forced savings account’ that allows you to build wealth. As a renter, it is the landlord’s equity, and wealth, that you are building-rather than your own.
It’s Time to Move on with Your Life
As mentioned previously, rates are going to increase-along with prices. Furthermore, rents have increased by 40%-in just the past 4 years in San Diego-and there is no end in sight. So, why not lock in a fixed payment now-and begin building significant equity for your future-and that of your family?
I know of several excellent low-down payment loan programs that are available right now-including one that requires just 2% down-and another that requires no down payment at all.
If you would like to discuss your options-please feel free to contact me any time. There is no cost or obligation on your part. I am always happy to answer your questions and to help you. Don