Home Prices on the "UP" lately
Below are some factors that are contributing to the current increase in home prices.
It is said that the (1) Historically Low interest rates, (2) Low home inventory (3) a minimal amount of NEW home and/or Condo construction (4) the ease of Mortgage Credit underwriting standards and (5) a very notable rise in RENTAL rates have contributed to the over abundant number of usual buyers this season.
Adding to that: (6) as of late there has been fewer “distressed homes” (ie: Short Sales and Foreclosed- Bank owned [REO] properties) in the market. The further reduction of distressed homes in the market has pretty much eliminated the idea that one can still get a "great deal" on Short Sales and Foreclosed properties.
When you group all 6-factors together, this has created a Supply vs. Demand scenario which is favoring the owners/sellers in a sense that these buyers now find themselves competing with each other - therefore driving the home prices up.
Again, currently there is a lot of buyers and not enough inventory (homes for sale), therefore this scenario has created a “Bidding War” environment which has resulted in an upward pressure on Home prices.
A positive note on all this is that the recent increase in home prices has definitely helped increase your neighborhood values and also has lowered the number of homeowners who are considered “underwater” on their mortgage. This reduction of homes “underwater” also is looked upon as a very valuable and important step toward reducing future Mortgage Defaults ….which in the past resulted in many Short-Sales and Foreclosures.
If you or someone you know are thinking of Selling, feel free to reach out to me and we can "List" your property for sale with much exposure to potential buyers. As your San Diego REALTOR® Consultant / Listing agent, my objective is to always get you "Top Dollar" for your home.
I'm easy to get a hold of and you can contact me anytime.
BROKER - REALTOR® - San Diego, CA