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
January Real Estate Market Update - San DIego
Dated: January 11 2021
Amidst the continued craziness and uncertainty in much one this is for certain people are still buying houses and homeowners over the last year have gained a tremendous amount of equity.
As Frank Nothaft, Chief Economist at CoreLogic recently quotes: “Over the past year, strong home price growth has created a record level of home equity for homeowners. The average family with a home mortgage loan had $194,000 in home equity in the third quarter. This provides an important buffer to protect families if they experience financial difficulties and is one reason for the generational low in foreclosure rates.”
Corelogic statistics also show that 38.2% of homes owned in the US are owned free and clear and there has been an average of 10.8% increase in equity in 2020 totalling over $1 Trillion. As you can see from this map, California had the second highest gain in equity. So what lies ahead in 2021... I don’t see a surge in foreclosures, with the amount of equity homeowners have gained. That and the change in where people are working, there has been a large amount of people working from home due to the pandemic and that will affect their home buying and renting decisions. Home builders are doing their best to provide more housing supply but cannot keep up with demand which keeps prices appreciating. As you can see from the graph the top real estate economists are all calling for home appreciation in 2021.
So what’s happening locally? Our market is right there with the nation, there is not enough inventory to satisfy buyer demand and prices are staying steady or increasing. Looking at the stats from 749,500the end of December for San Diego County the median sales price for detached homes is $749,500, average marketing time was a short 24 days, homes are selling slightly above the listing price and inventory is down below one month of homes available for sale. Condos and townhome median sales price increased from the November to $495,000, the average market time is 28 days, on average they are selling almost at list price and there is only a one month supply of homes.
Please reach out to me if with any of your real estate questions and needs, I love setting my clients up for success. Wishing you a healthy, happy and successful 2021.
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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