Lots of happy talk today about the highest sales pace in eight years, and the highest U. S. median price of all-time. Somehow they left out the credit-is-too-tight mantra this week?
http://www.housingwire.com/articles/34546-existing-home-sales-prices-reach-all-time-high
An excerpt:
Lawrence Yun, NAR chief economist, said that buoyed by June’s solid gain in closings, this year’s spring buying season has been the strongest since the crisis began.
“Buyers have come back in force, leading to the strongest past two months in sales since early 2007,” Yun said. “This wave of demand is being fueled by a year-plus of steady job growth and an improving economy that’s giving more households the financial wherewithal and incentive to buy.”
But the happiness has it limits – and around San Diego County it’s those detached-homes under $1,000,000 that are really cooking:
| Category | ||
| Active Listings | ||
| June Solds | ||
| Months’ Worth of Inventory |
The trickle-up effect hasn’t benefitted the higher-end market as much as you’d expect. Maybe now that lenders have eliminated the anti-buy-and-bail guideline, we might see more move-ups!
Once you get above 1 mil, you need to either have a big down or an income above the 200K-300k mark, that kind of puts limits on the numbers IMO.
Plus not that many people (unless very well off) want to increase their property Tax burden that much.
IMO anyway.
Bad news if you’re a first-time buyer. SD market is incredibly expensive.
SoCal Coastal has been very expensive for the last 50 years (well maybe 25-30 years for SD).
They will build more inland, Seems kind of slow coming for SD but it’s only a matter of time.