As we enter the final quarter of 2016, not much has changed since the year began. Market predictions have been, in a word, predictable. A relatively comfortable pace of activity has been maintained thanks to continuing low unemployment and mortgage rates. The one basic drag on market acceleration has been inventory decline. There is little to indicate that the low inventory situation will resolve anytime soon.
- Closed Sales increased 6.9 percent for Detached homes and 1.4 percent for Attached homes
- Pending Sales increased 10.9 percent for Detached homes and 9.7 percent for Attached homes
- The Median Sales Price was up 11.1 percent to $650,000 for Detached homes and 7.9 percent to $410,000 for Attached homes
- Days on Market decreased 11.6 percent for Detached homes and 20.0 percent for Attached homes
- Supply decreased 16.1 percent for Detached homes and 27.8 percent for Attached homes
Builder confidence is as high as it has been in more than a decade, yet the pace of economic growth has been slow enough to cause pause. A low number of first-time buyer purchases and a looming demographic shift also seem to be curbing the desire to start new single-family construction projects.
Information taken from HomeDex™. Copyright © 2016 by the North San Diego County Association of Realtors (NSDCAR). Used with permission.