San Diego Market Statistics
Many sellers and builders are in a good position for financial gains, as the
economy continues to favor putting existing homes on the market and
building new homes for sale. We are finally beginning to see some upward
movement in new listings after at least two years of a positive outlook.
There may not be massive increases in inventory from week to week, but a longer-term trend toward more new listings would be a good sign. Low inventory should continue to create a competitive situation for buyers, causing price increases over the next several months.
This winter and spring exhibited unseasonable weather patterns in much of the country. As the seasons change to something more palatable, wages and
consumer spending are both up, on average, which should translate positively
for the housing market. Being quick with an offer is still the rule of the day as
the number of days a home stays on the market drops lower. If that wasn’t
enough for buyers to mull over with each potential offer, being aware of
pending mortgage rate increases is once again in fashion
The Federal Reserve Raises Rates
The Federal Reserve raised its key short-term interest rate by .25 percent in March, citing concerns about inflation. It's the sixth rate increase by the Fed since December 2015, with at least two more rate increases are expected this year.
Borrowing money will be more expensive, particularly for home equity loans, credit cards and adjustable rate mortgages, but rising wages and a low national unemployment rate that has been at 4.1 percent for five months in a row would seem to indicate that we are prepared for this. And although mortgage rates have risen to their highest point in four years, they have been quite low for several years.