Home Prices Went Up $20,000 In One Month
It's an interesting time for sure!!
STATS
"In San Diego County, the median price for a single-family home was $1.04 million last month, a 2.7% increase from $1.02 million in March and a 12.6% rise from $930,000 one year ago. Seasonal factors and tight housing supply conditions will continue to put upward pressure on home prices in the coming months.
April's rebound in both home sales and prices shows the resilience of California's housing market and is a signal that buyers and sellers are beginning to adjust to the higher interest rate environment," said CAR President Melanie Barker.
Market fundamentals are showing signs of improvement, and competition is on the rise again; homes are selling faster, and nearly half the share of homes is selling above asking price—the highest in nine months.
Source: 7 San Diego News - Median Home Prices Went Up $20,000 in One Month
On a Personal Note
Back in January, we made the decision to buy. We bought a home that was a fixer-upper, definitely with highly deferred maintenance. We found out trustee sales are tricky. Ask me if you want to know more, and I'll do another post.
Anyway, we chose to buy, and we're glad we did! It took some effort, but it's been SO worth it. I feel blessed to wake up to this view every day.
Given the lack of inventory and knowing that when rates do go down, demand would increase, thus causing home prices to rise. And more demand and higher prices follow.
Understanding that getting into a home and waiting out the rate reductions would inevitably be an opportunity to refinance and reduce the mortgage payment.
Also recognizing we could take advantage of the tax write-offs with the points buydown, interest, property taxes, etc. In our situation with a rental cost of $5,200 a month and the benefit of the write-offs, it just made the most sense.
Gaining the appreciation over time that comes with real estate and having an investment and asset versus our monthly rent going down the drain.
While the Feds and economists thought there would be numerous rate reductions this year and they are slow to come, we now have an asset and know the real estate market is cyclical. And home prices continue to rise here.
And the reality is San Diego's market doesn't have a lot of inventory. It's a tight market, and there is finessing to get in. A strategy needed.
Lack of places to build, investors buying properties, and the biggest one I believe being the Covid interest rates have so many homeowners staying put—for now.
What I hear from real estate economists is the threshold in which homeowners would be willing to make a move is a 5% interest rate. It's all conjecture, but it's worth keeping your ear to the ground.
I stay with the premise, if you can get in the market and afford to buy a home, I would do it. (I did do it) In San Diego, I am betting the home values will just keep going up further as demand pushes them up when rates do eventually go down.
And sellers, market time depending upon your area of town is FAST. So if it is your time to sell, we can go over your property value and what you can net, too. Or if you just want a comp sheet ran, I am happy to run that for you, too.
When we bought our place, the market time for homes in the areas we looked was 7 days!! No joke. We ended up in 2nd position on 5 properties and lost out to cash buyers until we finally honed in on what our ideal home was (it was MUCH different than where we started). I truly believe that's when it all came into place, and our offer was accepted.
I'll write a separate post on that and how at each twinge of disappointment when our offer was not accepted, I honed in further on why the home wasn't for me and what was. 6 properties in, my original home search changed dramatically. And the perfect home revealed itself.
I created a system, spreadsheet, worksheet, and rating system to evaluate each property. Happy to share if you are looking to buy. You don't have to be in San Diego; I really just like to help people!
The Take Away
When I write a post from a stream of consciousness, I always like to ask friends what he/she most took away from this post, and this time it was...."You Need a PLAN!"
It's really true! Real estate is always changing; sometimes it is a buyer's market, other times a seller's market, and demographically it can vary a LOT.
Feel free to reach out if you want to discuss the market, your area, and situation and if it makes sense for you to take the leap, too.
Or if you are just starting the strategy process for when the time is right for you, we can chat and get the wheels churning.
Debby Eubank, Realtor, SRES
Nest & Invest Host / Real Estate Maven
Jason Mitchell Group
DRE# 01332306
619-820-9999
