The Housing Market Is Breaking Records
In the most recent report from the National Association of Home Builders, existing home sales skyrocketed in April to their highest annual levels since October 2013. This surge has been fuelled by pent up demand, as well as sustained job growth and a long stretch of low mortgage interest rates.
The growth in home sales doesn’t just pertain to the U.S. in general, either. Here in San Diego we have seen a whopping double-digit increase of 17.9% — from March to April.
While the California housing market has improved dramatically since the beginning of this year, it still has a way to go before affordability reaches ideal levels. Even with the progress made over the past two quarters, price stability and affordability still remain a ways off from the peak in Q2 2013.
In some metropolitan areas we are seeing bidding wars reaching close to 100%, with 32% of homes being sold for more than the asking price. Savvy buyers that learn how to play the system (rather than those that are waiting for affordability) are seeing nice returns.
If you’ve found yourself in a bidding war go ahead and check out my previous post on How To Win a Home Bidding War