With the end of the year well in sight, it’s time to reflect on some recent developments in our housing market.
Though we’re more than halfway through November, the September market numbers have only just been released, and so we’ll be taking a look at those today. There’s always a little bit of a lag in when market statistics come out, but the figures we’ll discuss in this update still have a significant bearing on what’s happening now.
First, the number of home sales has dropped by 17.5% year over year—constituting the lowest level we’ve seen in years.
Since the peak of $583,000, median home prices have gone down as well, decreasing to $575,000. But fear not: The median home price is still up 4% year over year.
Another notable change is the fact that homes are sitting on the market for longer than they have been in the recent past. There are 38% more active homes right now in San Diego County than there were in September of 2017.
And with this uptick in inventory, 26.4% of available homes have undergone price reductions.
Why is all of this happening? One major contributing factor is the increase in interest rates, which are up 1% since last year. They’re now at the highest level they have been at the past seven years, and they’re expected to continue going up. With that said, interest rates are still low from a historical perspective.
If you’re thinking of buying or selling, realize that change equals opportunity. As we move away from what was a complete seller’s market, buyers now have a greater chance of success. The shift toward a more balanced market doesn’t mean sellers are without options, though. Sellers can still succeed—it just may not happen as quickly. And that’s okay. Longer wait times are actually a sign of a healthy market.
Ultimately, the key to succeeding in today’s market, regardless of your real estate goals, is to partner with a professional agent who can guide you through current conditions.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.