The Lawhead Team would like to share the latest HomeDex Report for North San Diego County for July:

Summer 2022 has been a season of change for the U.S. real estate market. With housing affordability at a 33-year low, existing-home sales have continued to soften nationwide, falling 5.9% month-to-month and 20.9% year-over-year as of last measure, according to the National Association of REALTORS® (NAR). Pending home sales have also continued to decline, while new listings have steadily increased, with unsold inventory reaching 3.3 months’ supply at the start of August. The pullback in demand has been particularly hard on homebuilders, causing new-home sales and construction to slow.

Closed Sales decreased 34.2 percent for Detached homes and 27.1 percent for Attached homes. Pending Sales decreased 32.9 percent for Detached homes and 31.3 percent for Attached homes.

The Median Sales Price was up 4.8 percent to $985,000 for Detached homes and 15.9 percent to $672,500 for Attached homes. Days on Market increased 60.0 percent for Detached homes and 75.0 percent for Attached homes. Supply increased 20.0 percent for Detached homes and 45.5 percent for Attached homes.

Inflation, higher interest rates, and fears of a potential recession have taken a toll on buyers and sellers this summer, leading many people to stay on the sidelines to see what will happen with the market. But some experts, including NAR Chief Economist Lawrence Yun, believe the worst of inflation may be over. Although sales prices remain up from this time last year, price growth is expected to moderate in the months ahead as the market continues to shift in a more buyer-friendly direction.

The HomeDex Report is from North San Diego County Association of Realtors.

The Lawhead Team would like to share the latest HomeDex Report for North San Diego County for February:

The U.S. real estate market remains hot ahead of the spring selling season, with existing home sales up 6.7% as of last measure, according to the National Association of REALTORS®. Experts attribute the growth in sales to an uptick in mortgage interest rates, as buyers rushed to lock down their home purchases before rates move higher. Mortgage rates have increased almost a full percentage point since December, with the average 30-year fixed-rate mortgage briefly exceeding 4% in February, the highest level since May 2019.

Closed Sales decreased 11.3 percent for Detached homes and 6.6 percent for Attached homes. Pending Sales decreased 15.6 percent for Detached homes and 18.2 percent for Attached homes.

The Median Sales Price was up 13.4 percent to $957,500 for Detached homes and 22.0 percent to $670,000 for Attached homes. Days on Market decreased 22.7 percent for Detached homes and 25.0 percent for Attached homes. Supply decreased 57.1 percent for Detached homes and 50.0 percent for Attached homes.

Inventory was at an all-time low of 860,000 as February began, down 17% from a year ago and equivalent to 1.6 months supply. According to Lawrence Yun, Chief Economist at the National Association of REALTORS®, much of the current  housing supply is concentrated at the upper end of the market, where inventory is increasing, while homes priced at the lower end of the market are quickly disappearing, leaving many first-time buyers behind. The shortage of homes is boosting demand even further, and with bidding wars common in many markets, it’s no surprise sales prices continue to soar.

The HomeDex Report is from North San Diego County Association of Realtors.

The Lawhead Team would like to share the latest HomeDex Report for North San Diego County for January:

The 2022 real estate market begins where 2021 left off, in which existing home sales reached their highest level since 2006, with the National Association of REALTORS® reporting sales were up 8.5% compared to the previous year as homebuyers rushed to take advantage of historically low mortgage rates. Home sales would’ve been even greater were it not for soaring sales prices and a  shortage of homes for sale in many markets, forcing a multitude of buyers to temporarily put their home purchase plans on hold.

Closed Sales decreased 12.8 percent for Detached homes and 17.5 percent for Attached homes. Pending Sales decreased 8.3 percent for Detached homes and 7.3 percent for Attached homes. The Median Sales Price was up 18.4 percent to $947,000 for Detached homes and 11.4 percent to $595,000 for Attached homes. Days on Market decreased 26.1 percent for Detached homes and 38.1 percent for Attached homes. Supply decreased 46.2 percent for Detached homes and 50.0 percent for Attached homes.

For many buyers, 2022 marks a new opportunity to make their home purchase dreams a reality. But it won’t be without its challenges. Inventory of existing homes was at 910,000 at the start of  he new year, the lowest level recorded since 1999, according to the National Association of REALTORS®, and competition remains fierce. Affordability continues to decline, as inflation, soaring sales prices, and surging mortgage interest rates reduce purchasing power. The sudden increase in rates and home prices means buyers are paying significantly more per month compared to this time last year, which may cause sales to slow as more buyers become priced out of the market.

The HomeDex Report is from North San Diego County Association of Realtors.

The Lawhead Team would like to share the latest HomeDex Report for North San Diego County for November:

The economy is improving, unemployment is falling, and the U.S. real estate market remains strong as we head

into the holiday season, a period when activity typically slows as people take time to travel, celebrate, and spend time with loved ones. Although the market is not as frenetic as was seen earlier this year, buyer demand is high, bolstered by attractive mortgage rates and a low supply of inventory.

Closed Sales decreased 20.6 percent for Detached homes but increased 1.2 percent for Attached homes. Pending Sales decreased 10.7 percent for Detached homes and 11.4 percent for Attached homes.

The Median Sales Price was up 16.6 percent to $915,000 for Detached homes and 25.7 percent to $635,000 for Attached homes. Days on Market decreased 10.0 percent for Detached homes but increased 6.7 percent for Attached homes. Supply decreased 56.3 percent for Detached homes and 58.3 percent for Attached homes.

The most recent data from the National Association of REALTORS® reports the median single-family existing home sales price rose 16% in the third quarter of this year to $363,700, with all four regions of the country experiencing double-digit price growth. In new construction, builder confidence increased in November, surpassing analyst expectations and rising to 83 on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), the highest level since spring, despite persistent labor and supply chain challenges and a shortage of available lots.

The HomeDex Report is from North San Diego County Association of Realtors.

Supply constraints and higher home prices will bring California home sales down slightly in 2022, but transactions will still post their second highest level in the past five years, according to a housing and economic forecast recently released by the California Association of REALTORS® (C.A.R.).

The baseline scenario of C.A.R.’s “2022 California Housing Market Forecast” sees a decline in existing single-family home sales of 5.2 percent next year to reach 416,800 units, down from the projected 2021 sales figure of 439,800. The 2021 figure is 6.8 percent higher compared with the pace of 411,900 homes sold in 2020.

The California median home price is forecast to rise 5.2 percent to $834,400 in 2022, following a projected 20.3 percent increase to $793,100 in 2021 from $659,400 in 2020. An imbalance in demand and supply will continue to put upward pressure on prices, but higher interest rates and partial normalization of the mix of sales will likely curb median price growth.

Additionally, a shift in housing demand to more affordable areas, as the trend of remote working continues, will keep prices in check and prevent the statewide median price from rising too fast in 2022.

“A slight decline next year from the torrid sales pace of the past year-and-a-half will be a welcome relief to potential homebuyers who have been pushed out of the market due to high market competition and an extremely low level of homes available for sale,” according to C.A.R. President Dave Walsh. “Homeownership aspirations remain strong and motivated buyers will have more inventory to choose from. They will also benefit from a favorable lending environment, with the average 30-year fixed rate mortgage remaining below 3.5 percent for most of next year.”

C.A.R.’s 2022 forecast projects growth in the U.S. gross domestic product of 4.1 percent in 2022, after a projected gain of 6.0 percent in 2021. With California’s 2022 non-farm job growth rate at 4.6 percent, up from a projected increase of 2.0 percent in 2021, the state’s unemployment rate will decrease to 5.8 percent in 2022 from 2021’s projected rate of 7.8 percent.

Growing global economic concerns will keep the average for 30-year, fixed mortgage interest rates low at 3.5 percent in 2022, up from 3.0 percent in 2021 and from 3.1 percent in 2020 but still low by historical standards.

“Assuming the pandemic situation can be kept under control next year, the cyclical effects from the latest economic downturn will wane, and a strong recovery will follow,” according to C.A.R. Vice President and Chief Economist Jordan Levine. “However, structural challenges will reassert themselves as the normalization of the market continues. Demand for homes will continue to outstrip available supply as the economy improves, resulting in higher home prices and slightly lower sales in 2022.”

As your title partner, we’re here to support you and your clients throughout each transaction in this ever- changing market.

Adapted from an article published by the C.A.R. (California Association of REALTORS®)

The Lawhead Team Goes Social…

Thanks to Social Empire Media Marketing for being the inspiration and the glue in keeping the task of a total re-design of a 10+ year old website on track.  To his credit, Pedro has taken me from vaguely understanding redirecting a server, to “going live,” teaching me how to video blog and then focusing on S.E.O in three short months.  Rock on! Check out www.thelawheadteam.com and see what all the excitement is about.