As the summer draws to a close, multiple opposing factors and trends are competing to define the direction of the real estate market. After the Federal Reserve lowered its benchmark interest rate on July 31, 30-year mortgage rates continued to decline, approaching all-time lows last seen in 2016.
Yet most experts agree these reductions are unlikely to bring sufficient relief, at least in the short term, for first-time home buyers. The lack of affordable inventory and the persistence of historically high housing prices continue to affect the housing market,leading to lower-than-expected existing home sales at the national level.
- Closed Sales decreased 7.3 percent for Detached homes and 8.1 percent for Attached homes.
- Pending Sales increased 10.8 percent for Detached homes and 19.2 percent for Attached homes.
- The Median Sales Price was down 2.7 percent to $720,000 for Detached homes and 1.2 percent to $447,500 for Attached homes.
- Days on Market increased 2.8 percent for Detached homes and 26.9 percent for Attached homes.
- Supply decreased 14.7 percent for Detached homes and 12.0 percent for Attached homes.
As many homeowners refinanced their homes to take advantage of declining interest rates, consumer confidence in housing was reported to be at historically high levels. Even so, real estate professionals will need to monitor the market for signs of continued imbalances. Although the inventory of affordable homes at this point remains largely stable, it is stable at historically low levels, which may continue to push prices higher and affect potential buyers across the U.S.
San Diego North County Monthly Housing Market Indicators August 2019. Listings, Sales, Days on Market and more broken out by zip code.Aug-19-Monthly