San Diego County is on track to build more homes in 2018 after years of staying below historical norms.

In the first six months of 2018, there were 6,953 residential permits issued in San Diego County, a 64 percent increase from the same time last year, said a new report from the Real Estate Research Council of Southern California.

San Diego had the largest increase in homebuilding of the Southern California counties in the six-month period.

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According to the San Diego Union Tribune, San Diego had the fourth highest price gains in the nation in November, said a key real estate index released Tuesday. The region’s home prices rose 7.4 percent in a year, said the S&P CoreLogic Case-Shiller Indices. Only Seattle, Las Vegas and San Francisco had bigger increases in the 20-city index. San Diego had been in the top three cities for increases since August, representing a substantial rise in prices in 2017. -January 31, 2018

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According to the New York Times, finding a home became harder in 2017. In the last year, American home buyers faced shortages in the number of properties available for sale. “We saw the lowest number of active listings for sale in over two decades, a full generation,” said Javier Vivas, director of economic research for Realtor.com. In December 2017, inventory was down 9.2 percent compared with a year earlier, with the least expensive listings — those priced under $200,000 — showing the biggest drop: 19 percent.

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Realtor.com Says San Diego is the 5th Hottest Real Estate Market in June 2016

Realtor.com Says San Diego is the 5th Hottest Real Estate Market in June 2016

Click here to read the article. Kudos San Diego!

San Diego Home Prices Continue to Rise

According to the San Diego Union Tribune, home prices were up 6.9 percent in January over the last 12 months in San Diego County, said the S&P/Case-Shiller Home Price Index released Tuesday.

From December to January, the median home price in San Diego County, adjusted for seasonal variation, increased 1.1 percent, beating the national average by 0.6 percent.

David Blitzer, managing chairman of the Index Committee at S&P Dow Jones Indices, said in the report that home prices nationally continue to climb at more than twice the rate of inflation. But, housing supply is still a major issue.

San Diego had the lowest drop in home inventory, 30.2 percent, in the nation from January 2015 to January 2016, real estate tracker Zillow said.

Zillow chief economist Svenja Gudell said in a statement Tuesday that besides low inventory and problems for first-time buyers, the latest numbers pointed to a healthy economy.

How Do Homeowners Accumulate Wealth?

The differences between buying and renting are massive. According to the Federal Reserve, a typical homeowner’s net worth was $195,400, while that of renter’s was $5,400. The data reflects 2013 and the next survey of household finances, which is conducted every three years, will be out in 2016. Based on what has happened since 2013 and projecting a conservative assumption of what could happen next year to home prices if we see only 3% price growth, the wealth gap between homeowners and renters will widen even further. The Fed is likely to show a figure of $225,000 to $230,000 in median net worth for homeowners in 2016 and around $5,000 for renters. That is, a typical homeowner will be ahead of a typical renter by a multiple of 45 on a lifetime financial achievement scale.

– Forbes, October 2015 (Lawrence Yun, Contributor)

Remodeling Market Reaching New Heights

According to a report released in January 2015 by the Harvard University Joint Center for Housing Studies, the remodeling market has reached new heights. Kermit Baker, director of the center’s remodeling futures program, forecasts that spending in the U.S. remodeling market will grow by 4% to 5% this year to at least $330 billion, spanning work on both owned homes and rentals. That’s a slower growth rate than in previous years of the recovery, but it would be enough to make 2015 the richest year for remodeling spending of the past 15, surpassing the previous high point of $324 billion in 2007.

“The market is largely recovered,” Mr. Baker said. “It will resume growth at its historical level, which has been (an average of ) just about 5% year over year for the past 30 years.” The main reason: A similar easing of home-price appreciation. The median resale price of existing homes last month of $209,500 marked a 6% increase from a year earlier. In comparison, the increase in 2013 was nearly 10%. Homeowners are less likely to push ahead with an ambitious, pricey renovation if their home equity isn’t growing as rapidly anymore. – WSJ, January 2015

U.S. Housing Starts Jump 15.7% In July

As per Forbes magazine, builders are feeling more confident in the housing market. Groundbreakings on new homes rose 15.7% in July over the prior month.

Housing starts stood at a seasonally adjusted annual rate of 1.093 million in July, the strongest level the U.S. has seen in seven months. The figures, released Tuesday by the U.S. Department of Commerce, reverse a two-month decline in groundbreakings on new homes, and correlate well with data released Monday that shows builder confidence up two points in August.

Recent data shows that the average time a home was listed for sale has dropped. The current available home inventory in the United States is declining for the first time in years. Growing demand and shrinking inventory will help drive home prices higher in the coming months. Now may be the right time to buy before housing prices increase or interest rates increase.  For specifics on your neighborhood’s average days on market, call me at 760.990.3127.

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The Housing Market Continues its Recovery

According to the WSJ.com, home prices marked their strongest year-to-date gains since 2005, climbing 5.9% through July and signaling the housing market’s steady trudge toward recovery.  Click below to read more and contact me for specific information on your neighborhood!

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