During the past 12 months in San Diego County the median "Sold" price of detached homes increased by $48,000, an average of nearly $1,000 EVERY WEEK.
Draw your own conclusions, but if you are planning to buy in the next couple of years:
If you are a buyer ... buy fast (and buy two if you can)
If you are a seller ... you are in a good place (if you are not greedy)
A cautionary note: While the average market time of a detached home during 2013 was about 55 days, in 2014 it's increased to just over 110 days: an indication that higher prices significantly decrease the buyer pool (demand) and leave more homes on the market for a longer period of time (supply). This healthy byproduct of any economy tends to slow sales and keep prices in check.
Today there's plenty of room for home prices to increase, and they will, and if you are looking to buy in the next couple of years, procrastinating will likely leave you with higher mortgage payments.
And don't forget, interest rates can't stay this low forever. When they jump from their current 4% to let's say 5%, on a $400,000 home loan your monthly mortgage payment will increase from about $1,910/mo. to $2,150/mo. That's a $240/mo. jump in payment ... for the same mortgage amount.
According to the National Association of Home Builders, a $1,000 increase in home prices keeps more than 200,000 buyers (nationally) from qualifying for the purchase of a home.
Draw your own conclusions, but if you are planning to buy in the next couple of years:
If you are a buyer ... buy fast (and buy two if you can)
If you are a seller ... you are in a good place (if you are not greedy)
A cautionary note: While the average market time of a detached home during 2013 was about 55 days, in 2014 it's increased to just over 110 days: an indication that higher prices significantly decrease the buyer pool (demand) and leave more homes on the market for a longer period of time (supply). This healthy byproduct of any economy tends to slow sales and keep prices in check.
Today there's plenty of room for home prices to increase, and they will, and if you are looking to buy in the next couple of years, procrastinating will likely leave you with higher mortgage payments.
And don't forget, interest rates can't stay this low forever. When they jump from their current 4% to let's say 5%, on a $400,000 home loan your monthly mortgage payment will increase from about $1,910/mo. to $2,150/mo. That's a $240/mo. jump in payment ... for the same mortgage amount.
According to the National Association of Home Builders, a $1,000 increase in home prices keeps more than 200,000 buyers (nationally) from qualifying for the purchase of a home.
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