According to CoreLogic, it’s still a seller’s market with the average days on market for a home dropping to 33, which is 50 percent less than it was 10 years ago. Granted, it’s also a seller’s market because of a lower inventory of homes for sale.
Also, in January, CoreLogic said the median price of a home in San Diego County jumped by 7 percent, compared with the same month a year earlier, while the number of homes sold rose by 4.6 percent. The median price of a San Diego County home was $495,000 in January 2017, up from $462,750 in January 2016. A total of 2,480 homes were sold in the county in January 2017, up from 2,370 during the same month the previous year. Normally, some people prefer not to buy or sell during the holidays, which translates into a relatively low number of deals, but that didn’t seem to be the case this year.
Indeed, San Diego homes might be pricey. However, fortunately, thanks to low interest rates, mortgage payments can still be made affordable even in a market with increasing purchase prices.
In October 2016, the median hit $507,500, its highest point in a decade, but the median has remained under half a million dollars since and pushed the nominal 2005 peak of $517,500 (or $644,487 in 2016 dollars) further out of reach. Irvine-based CoreLogic provides real estate data and analytics for the real estate, mortgage finance, insurance and capital markets.
In addition, according to Realtor.com, a website, run by the National Association of REALTORS®, San Diego’s single-family home market ranked as the sixth-hottest in the nation in February. Seven of the 10 “hottest” markets were in California; most were in northern California. The Los Angeles area came in 20th. The nation’s hottest home market in February was Vallejo-Fairfield, where the median time on the market for a home listed for sale was 33 days. Realtor.com said February 2017 appears to be a record setter for the highest listing prices and the shortest average time on the market since the recession.
So, the spring buying season seems to be off to a booming start. Homebuyers take note because this year may become even more of a seller’s market than last year.
Also, according to online real estate company Zillow, the best time to sell a home in San Diego is the first two weeks of April. Zillow’s recent study compared the best time to list a home for sale in the top metropolitan areas across the U.S. For San Diego, homes listed in the period April 1 to 15 sold 13 days faster and at a 1.3 percent premium. Saturday was identified as the ideal day to list. A little farther north in Los Angeles, the best time to list is a Friday between April 16 and 30, with the average home selling 15 days faster at a slightly lower 1.0 percent premium. Weather patterns also affect the best window to sell in different areas. Sellers in sunny Arizona, Texas, California and Florida have more flexibility in the listing timeframe, according to Zillow. Nationally, the best time to list is May 1 to 15, when homes sell around nine days faster and for nearly 1 percent more than the average listing.
Overall, 2017 is shaping up to be another competitive buying season. The Zillow economist said that by May some buyers may be anxious to get settled into a new home and will be more willing to pay a premium to close the deal.