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
October Market Update
Dated: October 14 2020
To sell or not to sell???
I know, I know, it’s so crazy and scary especially right now to know what to do. Should you wait? Is the market going to go up? Is the market going to go down? As we continue to recover from the economic shut down, it seems as though the real estate market hasn’t skipped a beat!
I have so many sellers up in the air about selling with all that is going on right now. No one including me has a crystal ball but let’s take a look at what the experts are saying as we head through the end of this crazy year. We are still seeing a lack of inventory locally and nationally which is driving demand up.
As Daniel Hale, Chief Economist at Realtor.com research states,
“Total inventory was down 38 percent. Buyers continue to be motivated by low mortgage rates and a strong desire for the certainty of ownership in an uncertain world. They’re quickly putting offers on homes that come up for sale, driving the overall number of homes for sale lower.”
Three major real estate economic forecasters changed their predictions to more positive appreciation over the next year and 8 out 9 forecast an average of just over 3% appreciation over the next 12 months.
A lot of people have been worried about the forbearance situation and how that will affect the market, the good news is that the number of forbearances has leveled off over the last three months and is expected to continue to go down as more and more jobs are brought back.
Jeff Ostrowski, Senior Mortgage Report for Bank Rate says,
“The COVID-19 pandemic will lead to a rise in mortgage defaults and foreclosures. But as the housing market muscles through this economic downturn, it looks as if foreclosures will form a trickle rather than a flood, housing experts say.”
So what’s happening locally? Well according to the Bureau of Labor Statistics the unemployment rate in San Diego County declined to 12.9% in September and we have gained almost 70,000 jobs since the critical March through May period. The overall Median Home Sales Price was up 7.1% bringing to $616,000. The property type with the largest price gain was the Single-Family Homes segment, where prices increased 7.5% to $693,400 county wide. The median price for condos and townhomes came in at $479,000. The price range that tended to sell the quickest was the $500,001 to $750,000 range at 24 days and the slowest was the $5,000,001 and Above range at 101 days. Market-wide, inventory levels were down 44.8%. That amounts to 1.2 months supply for Single-Family homes and 1.7 months supply for Condos.
So as you can see it is still a great time to sell, plenty of buyer demand and not a lot of competition. Please feel free to reach out to me anytime CC Summerfield to ask questions or if you just need some advice about what to do in regards to buying or selling a home in San Diego. I love setting my clients up for success.
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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