San Diego Real Estate Market Update November 2014
San Diego’s real estate market could best be described as stable and balanced as we head into Thanksgiving, in line with the seasonal slowdown the market goes through this time of year. Sales of single family detached homes were up 2.1% while sales of attached homes are down 3.5%. Housing inventory is still below what is required, which is an ongoing problem in real estate markets all over the country.
The average home stays on the market for 45 days before being sold – compare this to the average market times of 6 months just a few years ago.
Market perception is a problem, both among home buyers and Realtors®. Despite interest rates holding at all-time lows, people seem to be under the impression that obtaining financing is still a challenge. According to a Realtor® quoted in this month’s Credit Suisse Realtors® Survey: “Perception that financing is even more difficult than it actually is.” As you can see in the info-graphic below, the lowest mortgage rates in 18 months and flat home prices have not lead to increased sales.
Employment figures have shown constant growth, gasoline prices are at historic lows and steadily rising home values in a stable real estate market have not resulted in a frenzy of buying. As we enter the end of the year it seems that actual market conditions are taking a back-seat to people’s perceptions of where they think the market is. Hopefully this changes soon.