Selling your home in San Diego in 2017? It is a great time for homeowners who have been waiting for the right time to sell their house. In North Park, South Park and other parts of the metro neighborhoods, prices have escalated way past 2005-2007 prices.
Interest Rates Are Going Up
There are talks of Interest rates going up soon. Although still very low, they have risen from the 3.75 that we saw in November of 2016. Even a small increase makes a big difference in what a home buyer’s purchasing power is. As interest rates rise, we will start to see home prices settle down. If a homebuyer is looking to buy a home that is $650,000 and putting 20% down, a 4% interest rate, is looking at 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 makes a huge impact and will decrease the buyers demand in purchasing a home. This alone makes it the perfect time to sell if a seller was 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 that 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, 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 the 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.