Market Update | Prices & Sales Up in 2016

posted on January 23rd, 2017 | filed under: Buying Strategies, Market Update, NoCo SD Market Conditions, Uncategorized

The median price for single-family homes in San Diego County rose 5.4% in 2016 compared to 2015. This is the fifth year in a row the median price for homes was higher than the year before.

The median price for condos/townhomes rose 8.3% from 2015, again, the fifth year in a row of higher prices.

Single-family home sales gained 0.7% year-over-year. Condo/townhome sales were up 0.3%.

Days of Inventory were at their lowest since before 2008, which means the pressure on pricing will continue.

NEW FHA LOAN LIMITS FOR 2016

The Federal Housing Finance Agency has released the conforming loan limits change for 2017. This change resulted in higher loan limits beginning in January for many counties across the country.

The Federal Housing Administration is insuring loans for people looking to purchase a home or refinance a home with a little equity. The program insures loans up to the maximum loan limit in the county in which the property is located.

The maximum loan limit in San Diego County is rising to 612,950 for 2017. This represents a significant change for people looking to purchase a home who have good income, sufficient credit, and a healthy debt-to-income ratio who are otherwise tight on cash to close. This change represents bigger borrowing power in nearly every county across the United States.

The fact that both FHA and the Conforming loan balances are now higher in nearly every county nationwide represents a growing trend of a more exuberant economy. Higher loan balance limits can mean the difference between renting and owning for many. This is particularly beneficial because the FHA Loan, while allowing a low down payment, is also very flexible in unique or difficult circumstances consumers sometimes are faced with.

Some of the things included are:

• Debt-to-income ratios as high as 55%

• Credit scores as low 580 for loans up to $424,100 and 640 score for loans exceeding $424,100

• Waiting time on previous short sale: three years

• Waiting time on previous foreclosure: three years

• Waiting time on previous Chapter 7 Bankruptcy: two years

• Will allow a borrower to refinance a second mortgage up to 96.5 loan-to-value

If you are looking to buy a home in 2017, an FHA loan could be a favorable vehicle to help get you there. An experienced mortgage lender who specializes in FHA loans may be the best place to begin looking. Keep in mind that, before you begin the lending process—or even start looking for a home—it’s a good idea to check your credit scores to see where you stand. It will let you know exactly how much loan you’ll qualify for. Also, it’s a good time to pull your credit reports to ensure there aren’t any mistakes, which could hurt you.

DECEMBER SALES STATISTICS SINGLE-FAMILY HOMES

Year-Over-Year

• Median home prices increased by 6.3% year-over-year to $553,000 from $520,000.

• The average home sales price rose by 8.9% year-over-year to $714,887 from $656,625.

• Home sales fell by 7.1% year-over-year to 1,865 from 2,008.

• Total inventory_ fell 11% year-over-year to 5,933 from 6,667.

• Sales price vs. list price ratio rose by 0.2% year-over-year to 97.9% from 97.7%.

• The average days on market fell by 2.3% year-over-year to 44 from 45.

Month-Over-Month

• Median home prices improved by 0.6% to $553,000 from $549,700.

• The average home sales price rose by 2.2% to $714,887 from $699,552.

• Home sales down by 0.6% to 1,865 from 1,876.

• Total inventory_ dropped 19.2% to 5,933 from 7,345.

• Sales price vs. list price ratio dropped by 0.0% to 97.9% from 97.9%.

• The average days on market increased by 8.1% to 44 from 41.

CONDOMINIUMS

Year-Over-Year

• Median condo prices increased by 2.7% year-over-year to $375,000 from $365,000.

• The average condo sales price rose by 3.0% year-over-year to $451,021 from $437,920.

• Condo sales fell by 23% year-over-year to 679 from 882.

• Total inventory_ fell 22% year-over-year to 1,772 from 2,271.

• Sales price vs. list price ratio rose by 0.1% year-over-year to 98.1% from 98.0%.

• The average days on market fell by 11.2% year-over-year to 38 from 43.

Month-Over-Month

• Median condo prices slipped by 1.6% to $375,000 from $381,000.

• The average condo sales price fell by 1.5% to $451,021 from $457,937.

• Condo sales down by 11% to 679 from 763.

• Total inventory_ dropped 17.5% to 1,772 from 2,147.

• Sales price vs. list price ratio dropped by 0.3% to

98.1% from 98.3%.

• The average days on market increased by 9.6% to 38 from 34.

Total inventory is active listings plus contingent or pending listings. Active listings do not include contingent listings.

posted by Jeff DeChamplain

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Jeff DeChamplain