Monthly Market Overview North San Diego County November 2019

In November, the Federal Reserve reduced its benchmark rate for the third time this year. This action was widely anticipated by the market. Mortgage rates have remained steady this month and are still down more than 1 percent from last year at this time. Residential new construction activity continues to rise nationally. The U.S. Commerce Department reports that new housing permits rose 5% in October to a new 12-year high of 1.46 million units.

  • Closed Sales decreased 2.6 percent for Detached homes and 16.1 percent for Attached homes.
  • Pending Sales increased 16.9 percent for Detached homes and 48.5 percent for Attached homes.
  • The Median Sales Price was up 4.3 percent to $725,000 for Detached homes and 7.2 percent to $453,500 for Attached homes.
  • Days on Market decreased 9.5 percent for Detached homes and 11.8 percent for Attached homes.
  • Supply decreased 35.5 percent for Detached homes and 21.7 percent for Attached homes.

While many economic signs are quite strong, total household debt has been rising for twenty-one consecutive quarters and is now $1.3 trillion higher than the previous peak of $12.68 trillion in 2008. While delinquency rates remain low across most debt types (including mortgages), higher consumer debt loads can limit future household spending capability and increase risk if the economy slows down.

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Monthly Market Overview North San Diego County October 2019

In October, mortgage rates increased slightly from the three-year lows seen in September. While the Federal Reserve reduced the federal-funds target rate by .25%, this decline was widely expected and largely factored into mortgage rates already, which are still approximately 1% lower than this time last year. Fannie Mae is predicting that continued low rates, and possibly lower rates, are expected in 2020.

  • Closed Sales increased 0.2 percent for Detached homes but decreased 5.1 percent for Attached homes.
  • Pending Sales increased 12.2 percent for Detached homes but decreased 4.1 percent for Attached homes.
  • The Median Sales Price was up 4.1 percent to $733,889 for Detached homes and 2.9 percent to $473,500 for Attached homes.
  • Days on Market decreased 2.6 percent for Detached homes but increased 3.2 percent for Attached homes.
  • Supply decreased 27.3 percent for Detached homes and 4.3 percent for Attached homes.

As we begin the slower time of year for home sales, historically low mortgage rates will continue to support buyer demand and may create additional lift to home prices as excellent affordability gives buyers the ability to offer more to secure their dream home. Throughout much of the country, the continued low level of housing inventory also continues to constrain sales activity from where it would likely be in a balanced market.

San Diego North County Monthly Housing Market Indicators October 2019. Listings, Sales, Days on Market and more.

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