I often get asked about what’s happening in the real estate market by buyers and sellers who are either just curious, or who may be thinking about buying and/or selling. In particular the interest is usually about where prices are headed. While I don’t have a crystal ball the trend has been for rising prices for quite some time, which has been good news for sellers, especially those who were underwater during the recession. And many buyers these days are interested in purchasing before prices get too high.
In the Carlsbad real estate market for example, average prices rose, on average, about 8% for detached homes from May 2016 to May 2017, and about 7% for attached homes (condos, town homes, twin homes).
It’s also useful to understand what is happening nationally as this impacts the overall economy and housing market, and can impact us here in CA as well as regionally and locally. Here’s the projection for 2017 average prices, as compared to 2016, on a national level.
Our inventory has also been tight for quite some time, on a national level as well as here locally in North San Diego County communities including Carlsbad (less than 2 months as of May 2017). Here’s where inventory has been on a national level. It’s even tighter in many parts of California and can vary by price point, neighborhood, and sub-division. Months of inventory under 6 months translate to a seller’s market due to supply and buyer demand.
Lastly, a common question I have been getting is about interest rates and where they are expected to go this year, and beyond. They have been historically low, although we have seen an increase in rates (they are still excellent, in my opinion), with projections by Fannie Mae, the Mortgage Bankers Association, and the National Association of Realtors for the next 4 quarters into 2018. Clearly the cost of buying a home will go up if you are using financing, in addition to the expected rise in average prices. If you are interested in buying in 2017, or will be selling and then buying, it’s something to consider sooner rather than later! Let me know if you have any questions or would like more information – call or text me at (760) 840-1360.