San Diego Real Estate Newsletter – June 2017

May 31, 2017

U.S. pending home sales off 1.3%

The National Association of REALTORS Pending Home Sales Index, “a forward-looking indicator based on contract signings, decreased 1.3 percent to 109.8 in April from a downwardly revised 111.3 in March. After last month’s decline, the index is now 3.3 percent below a year ago, which is the first year-over-year decline since last December and the largest since June 2014 (7.1 percent).” Once again a lack of inventory, not motivated buyers, is slowing the pace of home sales.

U.S. mortgage apps drop – nothing to buy

CNBC article states, “If consumers can’t find a home to buy, then they don’t need a mortgage. That’s what’s likely driving the weakness in mortgage applications, which fell 3.4 percent last week from the previous week.” Applications for refinance loans also dropped 6% for the week.

S.D. home prices outpace U.S. and CA

“The San Diego County median home price reached $525,000 in April, setting a new nominal peak. When adjusted for inflation, the price is still far from the roughly $644,500 peak reached in 2005,” reports Phillip Molnar in the San Diego Union-Tribune.

May 24, 2017

County median price hits $525,000

“The San Diego County median home price hit $525,000 in April, passing the region’s previous peak reached in 2005, real estate tracker CoreLogic reported Tuesday,” according to the San Diego Union-Tribune. It’s the same combination of factors driving up prices, high demand and very low inventory. “In April, there were 4,763 active home listings in San Diego County, said the Greater San Diego Association of Realtors. That is down from 5,754 listings the same time last year and the 6,386 in 2015.”

Cheaper to buy than rent across U.S.

CNBC’s Diana Olick writes that, “Home prices continue to rise at a fast clip, faster than incomes and faster than new employment, but it is still cheaper to own a home than to rent. So why are home sales falling? Because there are crazy few affordable homes for sale.” This is true even in San Diego where the price range of “affordable housing” is much higher than in many other real estate markets. Rents are very high here too.

May 12, 2017

San Diego 4th worst for home buyers

San Diego Union-Tribune reports on Zillow’s finding that the San Diego region is the 4th worst in the nation for first time home buyers. “The worst place for first-time buyers was San Francisco, followed by San Jose and Los Angeles.”