This month’s articles from MarketWatch, San Diego Union-Tribune, USAToday and the National Association of REALTORS all point to a stabilizing of the residential real estate market. The headlines all read negatively but the hyper appreciation of home prices could not continue unchecked. It’s good news for home buyers and a leveling of the playing field for buyers and sellers.
October 31, 2018
Home price appreciation slows
“The S&P/Case-Shiller 20-city index rose a seasonally adjusted 0.1% and was 5.5% higher compared to its level a year ago, the lowest annual increase in 20 months,” reports MarketWatch. INVESTOPEDIA
October 30, 2018
San Diego home sales down 17.5%
Phillip Molnar of the San Diego Union-Tribune reports on CoreLogic statistics indicating that the total number of homes sold in the San Diego County region was the lowest level since 2007. The average sales price also slipped below the all time high reported in August.
Millennials buying homes
USAToday reports that, “Millennials are shrugging off those growing housing-market obstacles and snapping up homes in greater numbers as they land better jobs and bigger raises.” I believe home ownership is still a goal of many. It has been a lack of inventory, not lack of motivation that has stymied the market over the last couple of years.
Economist Robert Shiller does not predict another housing bubble
“While noting that home prices having been rising since 2012, Professor Robert Shiller of Yale University told CNBC: ‘A housing bubble is not much in evidence…It’s not the same. It’s more placid.’ He added, ‘I don’t expect a sharp turn in the housing market at this point,'” comments Shiller in an INVESTOPEDIA article.
Homeowners staying put longer
I’ve been sensing this all year and an article in MarketWatch confirms that homeowners just aren’t moving. In San Diego folks aren’t selling because there’s nowhere to move to in the local area. All my sellers in the last couple of years have moved out of state. This also means fewer homes available for first time home buyers and low inventory levels which has been the cause of high property value appreciation.
Repeat buyers getting older
USA Today reports, “Repeat buyers are getting older. The median age was 55 years, up from 54 last year,” along with other interesting statistics about today’s home buyers’ profile.
October 25, 2018
U. S. pending home sales up 0.5%
The National Association of REALTORS Pending Home Sales Index indicates that, “Pending home sales rose slightly in September and saw substantial increases in both the West and Midwest. Lawrence Yun, NAR chief economist notes that, “‘the lack of inventory of moderately priced homes and affordability as factors restraining the housing market but when viewed through the lens of the last few decades, the current affordability climate is still favorable. “’When compared to the year 2000, when the housing market was considered very healthy and home sales figures were roughly equivalent, the affordability conditions were much lower compared to now. So even though affordability has been falling recently, the demand for housing should remain steady.’”