Are Houses Less Affordable Than They Were in Past Decades?There are many headlines about how housing affordability is declining. The headlines are correct: it’s less affordable to purchase a
August Market Update
Dated: August 15 2020
So much doom and gloom out there in the news!
Did you know that negative publicity gets more attention than positive publicity. So, it stands to reason that the major networks want to show you all the bad stuff that’s happening in the economy because they know negative headlines sell.
Well, I think it’s time to look at some of the positive things that are happening right now and focus on that, the recovery.
All of the indicators are important to look at when considering how they affect the housing market. We gained 1.8 million jobs, according the first Friday report by the Bureau of Labor Statistics and also according the Bureau of Labor Statistics 4.3 million jobs were created in June.
So unemployment went up in March and April and down in June and unemployment claims were down by 1.2 million at the time of this video. I understand that with what’s been happening recently with the virus, that this upsurge could go down and I’ll be looking at that and reporting accordingly.
So how is this affecting our market locally? Well the San Diego Association of Realtors reports that there has been an 11.1% increase in home prices bringing the median detached home price to $730,000 for the month of July and the condo/townhome average to $467,000. Black Knight reports that buyer’s purchase power is also up 10%. Now I know some buyers out there are waiting for the foreclosures to hit the market but Black Knight also states that, 77% of homeowners have at least 20% equity on their homes. So, the likelihood of foreclosure is very slim because they have the equity to sell. They also say and I quote “The high level of equity provides options for homeowners, policymakers, mortgage investors and service providers in helping to avoid foreclosure activity and default-related losses.”
Sooo, it’s not all gloom and doom. Be careful who and what you are listening to in making your decisions about buying or selling right now. To go over your options and get an accurate evaluation from an experienced professional or discuss if it’s a good time for you to buy, give me a call and I’ll be happy to help.
I have been a real estate agent here in Ocean Beach for the last 11 years and have lived in and loved this little beach community collectively for 20 years. My passion is helping people and after reti....
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