It is always interesting to compare real estate data (HomeDex) from previous years and the last two years were quite interesting in San Diego County. In 2020 new listings were down 11.1% compared to 2019 but pending sales were up 5.5% comparatively which means the overall absorption rate of the market was incredibly strong which makes sense due to less inventory. Overall closed sales were up 4% in 2020 compared to 2019 again reinforcing that those homes that did come to market were definitely more likely to sell in a 2020 market compared to 2019 . Single-family detached home prices were up 9.5% and single-family attached home prices were up 8% compared to 2019.
According to C.A.R, for the first time since the housing market recovery turned the corner on an annualized basis back in July, the number of existing single-family home sales declined on a year-to-year basis during the final week of February. This ends a 34-week consecutive streak of growing home sales, even though cumulatively, February closed with more homes sold than February 2020.
Even with the competitiveness of today’s market, homebuyers remain extremely positive about buying as they understand the advantages and security that real estate provides. Many say that monthly payment sells....not price and low interest rates have been that driving factor. With the strength of the economy and the sharp decrease in new Covid 19 cases, there will be pressure on interest rates to increase. Rates have moved about 1/4% higher than where they were at the start of February with an average of around 3% to 3.25%.
Spring season is upon us and many anticipate seeing more inventory come to market. Historically......the month of May generally is our strongest month for overall inventory. Due to high demand and limited inventory, Sellers profits continue to far exceed their expectations with many refusing "buyer love letters" that accompany offers as many review offers on a spreadsheet. I've been fielding many calls from Sellers and Buyers in this marketplace and always welcome the opportunity to reconnect with you or speak with your referrals.