Selling your home in San Diego in 2017? Well, let me be the first one to let you know and assure you that It is a great time for homeowners who have been sitting around and waiting for the right time to sell their house in North Park, South Park, and other parts of the metro neighborhoods. Their prices have escalated way past the usual 2005-2007 price ranges.
Interest Rates Are Going Up
There are a lot of talks and rumors of Interest rates going up soon. Although right now it is still very low, they have risen from the 3.75% that we saw in late November of 2016. Even a small increase in percentages makes a big difference in a home buyer’s purchasing power. As interest rates rise, we will start to see home prices start to settle down. If a homebuyer is looking to buy a home that is let’s say around $650,000 and putting a 20% down payment, and a 4% interest rate, we are looking at around a monthly payment of $3,376.31. If the interest rates go up to even 5.00%, that same buyer now has to pay $3,685.22. That is a difference of $308.91. This has a huge impact and will decrease the buyers’ demand to purchase a home. This alone makes it the perfect time to sell if a seller is trying to determine the best time to sell a home in San Diego.
Median Home Prices
Below is an active live chart showing the median prices in North Park over the last 13 years. You can see that our home prices are higher than in 2007 which is right before the 2008 decline.
Since there is a shortage of homes on the market, the prices are still good, and we are what we call a seller’s market. A seller’s market is when there are less than 6 months of active inventory for sale. A buyers market is when there are more than 7 months of active inventory. What that means is, that if we stopped adding inventory to the marketplace, it would take at least 7 months to sell everything. This is not the case in San Diego. Specifically, in North Park, South Park, and the Metro Neighborhoods, we see more like a 1.5-month inventory of homes.
Below is a chart that shows the active listings in the North Park area over the past 10 years. Here you will see the shortage that I am referring to.
Thinking of Selling Your Home?
Are you a homeowner in North Park, South Park, or any other metro neighborhood in San Diego? Are you thinking of selling your home? If so, contact the McT Real Estate Group right now. We will find out what your specific goals are and together come up with a strategic plan of action where you will receive the absolute highest dollar amount for your home.