Throughout the year, San Diego Housing Market has defied expectations.
The median sales price of a house in April was $565,500, up 3 percent for the month and 9 percent for the year. The condo median sales price nudged upward 1 percent over the month to $365,000, while the annual increase was 8 percent, according to SDAR data.
Homes are selling faster. Days on Market decreased 20.0 percent to 32 day for Detached homes in April 2016 compared to a year ago.
SDAR projected the San Diego Housing Market in 2016 would be a “Buyers Market” with “More Inventory” at the 32nd San Diego County Economic Roundtable on January 14, 2016. Why? Because it was widely expected that mortgage rates would gradually rise in 2016 after the Federal Reserve began it’s long-speculated move to raise the benchmark federal-funds back in December.
However mortgage rates have remained stubbornly and wonderfully low. The average 30-year fixed-rate mortgage was 3.64% on 5/23/2016. The historic low for 30-year rates was 3.31 percent in November 2012.
Market-wide, inventory levels were down 19.7 percent.
Overall San Diego Housing Market is a still Sellers Market.
“MBA currently forecasts the Fed will make two more moves to increase rates this year, with the first rate hike forecasted for the June meeting.”Lynn Fisher, Vice President of Research and Economics at the Mortgage Bankers Association (MBA), said “We think that mortgage rates will rise gradually through the end of the year, averaging about 4.2% in the fourth quarter”
We will see if that happens in June, until then the general outlook should remain strong.
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