Tuesday, March 4, 2014

Strong Spring Home Buying in Sight

Market Snapshot from the California Association of REALTORS® 

ATTENTION: Forward looking market indicators suggest we may be seeing a strong spring home-buying season. Data pending home sales from the California Association of Realtors (C.A.R.) shows a 23 percent increase in activity, offering solid information on future changes in the direction of the market. A "real estate sale"is listed as pending after a seller has accepted a sales contract on a property. The majority of pending home sales usually become closed transactions one to two months later.

Beautiful weather year round in San Diego (La Jolla pictured)

Where is the demand coming from?

I'm sure you have all heard from your agent at one point or another in the past year...the gripe about inventory. You may have also experienced multiple offers on the property you wanted and lost the opportunity to another buyer (perhaps cash buyer).

There has been a significant pent-up demand for homes. Following the recession, household formation in California fell dramatically. The latest estimate from C.A.R. shows that some 575,000 fewer households were formed in California between 2008-2012 due to economic hardship.

If the household formation trends continued at the pace seen before the recession, California would have not only that many new households, but 60 percent of those households would have been homeowners.

With improving economic conditions and solid employment growth across the state, pend-up demand for homes is evident in the pending sales index for January.

Potential Obstacles Buyers May Be Facing

  • Inventory of homes listed for sale is still at historical lows
  • Homes in the lower price segment of the market continues to fall
  • Credit History could make it difficult to qualify for a home loan
  • Insufficient Down Payment
  • More affordable to rent
Looking to Sell Your Home in San Diego? Contact Me

Low Inventory may change as prices of homes continue to improve. The low inventory environment may be great news for sellers. Potential sellers who have been contemplating of putting their home up for sale may want to take advantage of the low inventory of homes available for sale and list their homes.

Are you considering putting your home on the market but not quite sure where to start?

Contact me today for your personalized report, detailing your options for listing your home.

Check out this article we published last year around this time:
5 Simple Ways to Increase the Value of Your Home  

This article was brought to you by TLG Dream Team Member Teresa Schumacher with Berkshire Hathaway Home Services, your local San Diego REALTOR®

Are you currently renting and want to buy Real Estate in San Diego?

Zillow has this great mortgage calculator to give you an idea of what your mortgage would cost you. Some of you might be surprised that you could own for the same monthly cost of renting.
Check it out:

Teresa Schumacher
CalBRE 01731418
C: 619-995-2132
Office Location: La Jolla

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