Real Estate Report presented by Neal Hribar

May 2018 Report

Single Family Homes in Central San Diego, All Cities, All Neighborhoods Change >


Median Price
$685,000
+0.6%
Average Price
$1,065,450
+4.1%
No. Sold
430
+13.2%
Pending Properties
578
+1.4%
Active
781
+10.2%
Sale/List Price Ratio
98.8%
+0.1%
Days on Market
30
-5.7%
Days of Inventory
53
-5.9%

Market Barometer

Enlarge >
Loading...

Market Commentary

Sales Prices Set New Highs, Again

The median sales price for single-family, re-sale homes in San Diego County set a new high for the second month in a row, reaching $631,000 in April. It was up 8.6% year-over-year.

The average sales price also set a new high last month: $809,445, a gain of 6.8% over last April.

The median price for re-sale condominiums also set a new high. It was up 10.6% year-over-year, while the average price gained 12.8%, also a new high.

That’s seventy-one months in a row the median price for both homes and condos has been higher than the year before.

Home sales, meanwhile, were down 7.6% from last April. Condo sales were down 5.5%, year-over-year.

Homes continue to sell quickly, taking only thirty-one days from coming onto the market to when they go under contract. The average since January 2001 is fifty-seven days. Condos are selling in twenty-six days, the average is fifty-five days.

The sales price to listing price ratio continues to tease the 100% level: 98.8%. The ratio for condos is 99.4%.

Inventory continues to be abysmal. It is just over one-third the average since 2001. As of the 10th of May, there were 3,795 homes for sale. We average 8,515!

Condo inventory is at 1,406 units for sale. The average is 9,603.

This is reflected in our Days of Inventory statistic which is fifty-six for homes. The average is one-hundred and forty-four.

There are forty-one Days of Inventory for condos. The average is one-hundred and thirty-two.

If you would like to know what’s going on in your neighborhood, click on Recent Sales & Listings. That will tell you what is for sale and what has sold.

Selecting the Right Mortgage

Selecting the type of mortgage that best suits your needs is not a simple undertaking. The right mortgage will depend on many different factors, including your financial situation and how you expect it to change in the future, how long you'd like to keep your house, and how comfortable you are with the possibility of your mortgage payment changing.

For example, a 15-year fixed-rate mortgage can save thousands of dollars in interest payments over the entire term of the loan, but your monthly payments will be greater. With an adjustable-rate mortgage, you may start with a lower monthly payment  -- but your payments could increase.

The best way to find the right mortgage for you is to discuss your finances, plans and preferences with a mortgage professional, whom your REALTOR® can recommend.

FIXED-RATE MORTGAGES

Fixed-rate mortgages, the most common type of mortgage, offer consistently stable monthly payments. Your property taxes and homeowner's insurance may increase, but your monthly payments typically won't fluctuate.

With fixed-rate mortgages, you have the option of choosing a 30-year, 20-year, 15-year or 10-year repayment plan. You may shorten the loan through a biweekly mortgage, allowing you to make the equivalent of an extra month's payment per year. In selecting the length of your repayment, remember that a shorter loan carries higher payments but accrues less interest and allows you to build equity quicker.

ADJUSTABLE-RATE MORTGAGES

The interest rate on an adjustable-rate mortgage (ARM) is dictated by changing market rates. When interest rates rise, your monthly payments will go up, and when interest rates decrease, your monthly payments will go down accordingly.

ARMs often provide a lower initial interest rate than fixed-rate mortgages, attracting people who need lower payments early in the loan in order to qualify for a mortgage. ARMs also can benefit people who plan to move or refinance in the near future or those who expect their incomes to increase in the coming years.

Before applying for an ARM, find out how high your monthly payments can go during the life of the loan. An ARM includes two caps or limits on interest rate increases; one cap states the boundary for how high your interest rate can go during each adjustment period, and the other cap sets the maximum total amount of all interest adjustments over the entire term of the loan.

The rates of an ARM typically change once or twice a year, and there is usually a lifetime cap on both the individual rate adjustments and the total amount the rate can change over the life of the loan. By applying the terms of the caps to your mortgage payments, you can anticipate the worst-case scenario prior to applying and determine if this figure is in line with your finances.

REVERSE MORTGAGES

A reverse mortgage is a loan made to senior homeowners that allows them to convert the equity in their homes to cash for living expenses, home improvements, in-home health care, or other needs.

To obtain a reverse mortgage, you must meet certain criteria that differ greatly from the qualification requirements for other mortgages. Reverse mortgages are generally limited to borrowers 62 years or older who own their own homes either outright or nearly so. Homes also must be clear of tax liens. And, unlike other mortgages, seniors don't have to meet income or credit requirements to qualify for a reverse mortgage.

Borrowers typically have the option of receiving the reverse mortgage's proceeds in the form of a lump-sum payment, fixed monthly payments for life, or a line of credit. A reverse mortgage's interest rate is usually an adjustable rate that fluctuates monthly or yearly. However, the size of monthly payments that borrowers receive doesn't change.

BALLOON MORTGAGES

Balloon loans are short-term mortgages with some of the features of a fixed-rate mortgage, like low interest rates, but without the benefit of full amortization. As opposed to a 30-year fixed-rate mortgage, balloon loan payments only cover part of what you've borrowed during the term of the loan. At the end of the term, you're required to pay off the loan's balance by refinancing or making a lump-sum payment.

Balloon mortgages are typically five-, seven- or 10-year loans, so they can be beneficial to borrowers who anticipate selling or refinancing their homes in a short period of time.

Many companies offer a conversion feature at the end of the loan's term. For example, the loan may convert to a 30-year fixed loan at the 30-year market rate plus a certain percentage point. To qualify for a conversion, you usually need to be in good standing with the payments on your balloon loan. Balloon mortgage programs with conversion options are also called 7/23 convertibles or 5/25 convertibles.

BUY-DOWN MORTGAGES

Today's mortgage lenders have developed variations on the old buy-down method of offering an interest rate that is 2 percent below the fixed rate for the first year and 1 percent below the fixed rate for the second year, followed by 28 years of paying the regular fixed rate. Buy-downs now charge higher interest in the beginning of the loan to cover the future yields.

For example, if the current market rate for a fixed-rate loan is 8.5 percent at a cost of 1.5 points, the buy-down gives the borrower a first-year rate of 6.5 percent, a second-year rate of 7.5 percent and a third- through 30th year rate of 8.5 percent. The cost would be 4.5 points.

Prices & Sales

Enlarge >
Loading...

Days of Inventory

Enlarge >
Loading...

Sales to Date

Enlarge >
Loading...

Sales Price Ratio

Enlarge >
Loading...