As inventory continues to drop, the contradictions of today’s market are evident. Sellers should feel confident enough to list homes at fair prices and receive meaningful offers in a healthy residential real estate and overall economic environment. Demand is certainly present and has created competitive situations that have kept prices up.
The Median Sales Price in August was up 7.4 percent to $505,000. Pending Sales increased 18.6 percent. Days on Market decreased 11.8 percent. Supply decreased 17.9 percent.
NAR’s study reviewed new home construction relative to job gains over a three-year period (2013-2015) in 171 metropolitan statistical areas (MSAs) throughout the U.S. to determine the markets with the greatest shortage of single-family housing starts.
Using each metro area’s jobs-to-permits ratio, San Diego is one of 10 metropolitan areas suffering from “critically low home building,” with 55,825 permits for new homes required to meet demand.
The top 10 metro areas with the biggest need for more single-family housing starts to get back to the historical average ratio are:
New York (218,541 permits required)
Dallas (132,482 permits required)
San Francisco (127,412 permits required)
Miami (118,937 permits required)
Chicago (94,457 permits required)
Atlanta (93,627 permits required)
Seattle (73,135 permits required)
San Jose, California (69,042 permits required)
Denver (67,403 permits required)
San Diego (55,825 permits required)
The average 30-year fixed-rate mortgage is 3.57%. At the current average rate, you’ll pay about $453 per month in principal and interest for every $100,000 you borrow. Rates on mortgages change daily, but overall, they are at near record lows. If you’re in the market to purchase or refinance, it’s a great time to lock in a rate.