Q: What’s the Latest From Our Real Estate Market?
2020 has been a wild year so far; here’s its footprint on real estate.
Here are the specific stats from January 2020 through May 31, 2020, as compared to the same stretch of 2019:
Detached homes: Closed sales are down 16.1%. The good news, however, is that the median sales price is up 5.8% year to date. The average sales price is up as well—a 6.3% increase. In effect, a home worth $500,000 last year is now worth $530,000. Considering everything that’s happened so far this year, that’s a remarkable stat. Equally surprising is that homes are also selling faster this year than last year.
In San Diego County, days on market (or, the days it takes on average to sell a property) is 23, and in East County, it’s 18.
Condos and townhomes: Closed sales are down 12.9%, but the median sales price is up 5.2% and the average sales price is up 4.2%. Days on market is down 15%.
Whenever demand outweighs supply, prices will go up.
Prices are up, homes are selling quickly, and in East County, there are less than 500 properties on the market right now. In the whole county of San Diego, there’s only about 5,300—an extremely low number. Whenever demand outweighs supply, prices will go up.
Interest rates have been low for some time now, but they’re currently the lowest they’ve ever been in history. If you don’t believe me, read it for yourself: CNBC released an article titled, “Mortgage Rates Set New Record Low Falling Below 3%,” and Bankrate released one titled, “Benchmark 30-Year Mortgage Rate Falls to All-Time Low.”
Properties are receiving multiple offers, and more and more sellers are coming out of the woodwork as things begin to tilt somewhat closer to normal. Last year, homes were selling at 97.3% of list price on average, meaning that if a property was listed at $100,000, it likely sold at $97,300. This year, that list-to-sale price ratio is up 1.2%, meaning that sellers are getting more for their homes now.
If you have questions about anything discussed in this video or about real estate in general, don’t hesitate to give me a call or send an email. I’m here to help, and I look forward to hearing from you!