In this blog, we are going to be taking a mid-year look at real estate locally here in California, as well as nationwide.
Nationwide we are seeing an increase of homes for sale on the market, especially on the West Coast. This is due to increasing interest rates and rising prices, which leads to less people buying and then leads to an over-saturation of homes on the market. This will likely lead into a decrease in prices of already existing homes. The Census Bureau’s monthly data indicates a small upturn of sales due to increased homes on the market. This is likely attributed to homebuilders cutting prices and adding homes that cater to first-time and middle-income purchasers (Andrews).
Although this may seem like bad news for those who wish to list their homes, there are few reasons why listing your home in 2019 might be a good idea! Despite buyers’ hesitancy with the market recently, the amount of buyers coming to the market is still increasing. It is likely homes will sit on the market longer, but with the increase of millennial buyers, this is expected to adjust (Thorsby). Although mortgage interest rates are relatively high, it is still a good time to try and sell because these rates are expected to gradually increase overtime. The mortgage interest rate is not expected to have a sudden jump anytime soon, which makes it a safe time to list a home (Thorsby). Selling now vs 2020 may be the wise idea based on current trends. Over half of the 100 real estate and economic experts interviewed state that they believe 2020 will see a small recession. There are no predictions for the near future that would encourage a spike in the prices or purchasing of homes, so selling sooner is better (Thorsby). Home prices are leveling; mortgage rates are lowering which will likely bring back buyers who have given up on the market (Collins, J).
Locally here in California, housing prices fell in the month of March 2019 in Los Angeles, San Diego, and Orange County. This is the first time in seven years that listing prices have dropped in Los Angeles and San Diego County (Collins, J). Housing market appreciation is slowing down, which gives buyers more negotiating power. Los Angeles, Long Beach, and Anaheim saw a price drop in 17.4% of listings, San Diego County saw
a price drop in 21.3% of listings, and San Jose saw a price drop in 15.3% of listings (Robertson). California’s economy is likely to grow 2.55% in the next few months, which will create a strong economy ideal for buying and selling homes (Robertson).
Trends in the past few months show a need for affordable and multi-family homes in California, which will likely to lead to construction of new apartment and multi-family homes/units (Collins, G). Increasing prices in the metro areas like LA and San Francisco Area are leading potential buyers to cities like Riverside, San Bernardino and Sacramento counties. These California buyers that are willing to commute will change trends in California in the following years (Collins, G).
Nationwide Quick Stats: (single-family homes)
Median List Price: $314,900
Active Listing Count: 1,167,996
New Listing Count: 451,394
Average Listing Duration: 58
Millennials make up the largest group of home buyers at 36%
Local and California Quick Stats: (single-family homes)
Median List Price : $575,000
Active Listing Count: 76,629
New Listing Count: 40,086
Average Listing Duration: 43 days
All these stats are taken from Realtor.com
Andrews, Jeff. “The Housing Market Is in Flux Heading into Prime Buying Season.” Curbed, Curbed, 25
Apr. 2019, www.curbed.com/2019/4/25/18515951/housing-market-2019-west-coast.
Collins, Gord. “California Housing Market Report and Predictions 2019 2020.” ManageCasa, 28 Mar.
Collins, Jeff. “House Prices Drop in Three Southern California Counties.” Orange County Register, Orange County Register, 17 Apr. 2019, www.ocregister.com/2019/04/16/house-prices-drop-in-three-southern-california-counties/.
“Realtor.com Real Estate Data and Market Trends for Download.” Realtor.com Economic Research,
Robertson, Mark. “California's Real Estate Market Is Bending towards Buyers for the Summer - from San Diego Loan Advisor Mark Robertson.” Mark Robertson Mortgage, 29 Apr. 2019,
Thorsby, Devon. “Why You Should Sell Your Home in 2019.” U.S. News & World Report, U.S. News &
World Report, 7 Mar. 2019, realestate.usnews.com/real-estate/articles/why-you-should-sell-your-home