Market Update: February 2013
Clairemont home sales, along with most of San Diego real estate, had very strong sales activity in January post holidays. This sales active once again outpaced new listings resulting in lower inventory, which has been on the decline for over a year. What will happen next? Read on to find out! Here are the numbers for January for the 92117 zip code as of February 1:
Detached (homes) Listings:
Avg sale price = $430,627 | median sale price = $427,000
Avg Sold price/sq ft = $310 | Sales Range = $235k – 660k
Current Months of inventory = 0.7 (this indicates an extremely strong upward/seller’s market)
Attached (condos/townhomes) Listings:
Avg sale price = $179,557k | median sale price = $181k
Avg Sold price/sq ft = $216 | Sales Range = $102 – 319k
Current Months of inventory = 1.4 (this indicates a strong upward/seller’s market)
* Contingent = a short-sale that has an accepted offer, but no lender approval (yet).
We are currently experiencing an extremely low inventory market. Across San Diego, we have not seen inventory this low since mid-2004 when the market was still booming at 10-20%/year. Couple this extremely low inventory with near historically low interest rates and it’s no surprise prices are on the rise. Average sale prices are up about 10% in the last year and the current trajectory is moving fast.
The number of foreclosures in the market place has dropped significantly in the last couple years, which is contributing to these low inventory levels. In addition, there are less short-sales on market.
I was predicting that we had hit bottom over a year ago and it seems that prediction was correct in hindsight. Even if rates went up, it would take some serious downward pressure to counterbalance the lack of inventory and considering we are up about 10% in the last year, it is unlikely that we will ever see prices lower than we did 1-2 years ago.
Although prices were starting to go up at the beginning of last year, interest rates were dropping, thus actual cost for most homeowners (or at least those financing 80% or more) was actually dropping because monthly costs to own were down. Even with prices having recently gone up, actual cost is still near the bottom.
Either way, if you are a buyer and financing, you probably won’t ever find a better deal in Clairemont than you can today. With rates around 3.5%, if they go to 4.0% that is an approx 13% increase in cost. If rates go from 4% to 5%, that is an approx 26% increase!! Do you think it is more likely for rates to go to 4.5% or for home values to drop 26%? That is the question buyers have to ask themselves.
If you are a homeowner thinking of selling, this year could be a fantastic time to finally unload a property you’ve been holding onto because of a depressed market. With low inventory and low rates, buyers are lining up to pay more than the last comp. I am seeing multiple offers on any reasonably priced property. The market is super hot!!
If you are a Clairemont homeowner curious about your home value (or thinking of selling!), I am happy to send you my estimate. Visit my Clairemont Home Values page and fill out the form.
If you are seeking to purchase a home in Clairemont (or anywhere else in San Diego), visit my Clairemont Homes for sale page.
Thank you for reading – I welcome your comments, questions, and referrals. I would also appreciate you forwarding this to anyone you know that is interested in our local Clairemont real estate market.
73 Degrees Realty