The housing market reached new price peaks in 2017, shattering records left over from the 2005 housing boom.
Home prices rose as the number of homes for sale continued to drop — even more so than previous years. Meanwhile, the number sales stayed about the same.
Nationwide home inventory is down, not just in Southern California. A lack of home construction during the recession is seen as a reason because housing units did not keep up with natural population growth. In San Diego County, the monthly average home listings last year were about 5,000 homes, down from roughly 7,000 in 2014.
Sales were up in 2017
The number of home sales sold each year for the last decade has not varied much despite fewer homes on the market and rising prices.
According to CoreLogic’s latest Home Price Index, prices appreciated by 6.9% year-over-year from December 2016 to December 2017 on a national level. This marks the fifth month in a row with at least a 6.9% increase.
Dr. Frank Nothaft, Chief Economist for CoreLogic, gave insight into the reason behind the large appreciation,
“The number of homes for sale has remained very low. Job growth lowered the unemployment rate to 4.1 percent by year’s end, the lowest level in 17 years. Rising income and consumer confidence has increased the number of prospective homebuyers. The net result of rising demand and limited for-sale inventory is a continued appreciation in home prices.”
This is great news for homeowners who have gained nearly $15,000 in equity(on average) in their homes over the last year! Those homeowners who had been on the fence as to whether or not to sell will be pleasantly surprised to find out that they now have an even larger profit to help cover a down payment on their dream homes.
Homes sold fast
Increased competition for the reduced number of homes for sale meant homes stayed on the market for fewer days. Last year, a home sold in an average 31 days — the fastest since at least 2006 when the Greater San Diego Association of Realtors started keeping records.
As we near the traditionally busy spring buyers season, there is still hope for buyers as mortgage rates remain low compared to recent decades. The report also predicted that home price appreciation will slow slightly, rising by 4.3% by this time next year.
If you are looking to enter the housing market, as either a buyer or a seller, let’s get together to go over exactly what’s going on in our neighborhood and discuss your options!
If you have any questions or want more information, get in contact with me TODAY at 951.704.6370 or Kristi@KristiHardenRealEstate.com
*Information provided by: www.mykcm.com and www.sandiegotribune.com