With September starting on Friday, the June report feels a bit historical, especially when it is a weighted three-month average. But it shows that the first half of 2017 was strong sellers’ market in San Diego:
San Diego Non-Seasonally-Adjusted CSI changes:
| January ’17 | |||
| February | |||
| March | |||
| April | |||
| May | |||
| June |
At this rate (+5.4% in six months), we’re going to set a new record this year!
The highest reading of the San Diego NSA CSI was 250.34 in November, 2005.
The most-recent low point was 144.43 in April, 2009.
“The trend of increasing home prices is continuing,” David Blitzer, chairman of the S&P index committee, said in a statement. “Price increases are supported by a tight housing market” with both the number of homes for sale and days a house is on the market declining for the past four to five years.
“Rising prices are the principal factor driving affordability down,” Blitzer said.
Hey Jim, does this graph also account for inflation?
Hey Jim, does this graph also account for inflation?
No, just the raw, non-seasonally-adjusted data.
And if we were going to account for something, let’s start with the zany Fed policy of zero rates. We’ve been getting 30-year fixed rate mortgages at the same interest rate as the neg-am start rate in the bubble years.
If today’s mortgage rates were in the 5s, our housing appreciation would struggle to keep up with inflation.
Rates will not go up without inflation. Inflation means higher housing price.
Inflation will kick in for obvious reasons, probably soon, and rates will go higher. But housing price will continue to go higher, probably at an accelerated speed.
We will see the scenario like 70s and 80s again.
We closed at the end of Sept 2013….Thanks JtR!!!
A big reason why decided to take the plunge then was exactly what I feared when I look at this graph. I was convinced that the market would correct at some point, but my fear was that it would be a long time before it happened. And, by the time the correction did happen (still hasn’t) it would not retreat anywhere near the levels seen in 2013.
Oh lawdy, am I glad we bought when we did.
“Oh lawdy, am I glad we bought when we did.”
This will be the case for next 5-7 years. I’m not a realtor trying to get anyone to buy the house…