Real Estate Newsletter – November 2016

October 31, 2016

More open house signs, price reductions

My informal, seat of the pants analysis of the local San Diego real estate market is that I am seeing many more Open House signs on the weekends. This tells me some home aren’t selling the instant they hit the market like they have been the last few years. Also, when I’m searching the Multiple Listing Service looking for properties I’m finding price reductions. Again, this is something I haven’t seen in several years. Open House signs and price reductions are “normal” and a sign of a balanced housing market.

October 27, 2016

U.S. pending sales up 1.5%

CNBC reports that Pending Sales for resale homes were up in September after a decline in August driven by homes under contract in the western states. “Realtors noted a return of first-time home buyers to the market in September, with the highest share of closed sales in four years.”

October 26, 2016

Resale market remains slow

“Adjusted for seasonal variation, the regional index of home prices was 5.8 percent higher in August compared to a year ago. However, compared to July, the market appreciated by .21 percent, or an annual rate of just 2.5 percent, continuing a pattern that began in June.,” reports the San Diego Union-Tribune.

October 23, 2016

Buy or rent in San Diego?

“It is about 32 percent cheaper to buy than rent in San Diego,” according to a story in the San Diego Union-Tribune by Phillip Molnar. If first time buyers are really returning to the market and owning is less expensive than renting by 32% it is the making of a very healthy real estate market in San Diego.

October 20, 2016

First time buyers 34% of resale market

“Existing-home sales rebounded strongly in September and were propelled by sales from first-time buyers reaching a 34 percent share, which is a high not seen in over four years, according to the National Association of Realtors®. All major regions saw an increase in closings last month, and distressed sales fell to a new low of 4 percent of the market.” First time buyers have always been the anchor of a healthy residential real estate market so if they have returned that is very good news.

U.S. Existing home sales rebound

The Wall Street Journal reports, “Sales of previously owned homes rose 3.2% from August to a seasonally adjusted annual rate of 5.47 million in September, the National Association of Realtors.”

October 19

Rent and price appreciation to slow

“National home and rent price increases are expected to slow in the next two years, said a report of 51 economists and analysts,” and reported in the San Diego-Union Tribune. The San Diego region is also expected to see slowing price and rent appreciation but not as low as other parts of the country due to strong job growth and low inventory.

October 4, 2016

Adding “granny flat” just got easier

San Diego-Union Tribune article discusses recently passed legislation in Sacramento, “ust made it a lot easier for homeowners to build a granny flat in their backyard, which some San Diego leaders think could help ease housing woes. “