"Summer afternoon—summer afternoon; to me those have always been the two most beautiful words in the English language." - Henry James
Read on for real estate updates and things do this July!
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San Diego Real Estate
Top 5 Housing Trends
With nearly half of 2021 in the rearview mirror, we are officially in the Summer selling season. Here are the top trends to expect over the next 3 months: 1. Inventory will increase - slightly. The ultra-low inventory of available homes for sale has been the story for over a year now. Even with the 13% increase since May, today’s inventory of available single-family attached and detached homes is only 2795 units, 59% less than the 5-year average of 6900 units. 2. Demand will continue to decline throughout the year.
Demand, the number of new pending in the last 30 days, typically peaks between April and May. This year it peaked on June 10th at 3584 pending sales. As of July 7, demand was at 3288 units, an 8% decline from the peak. For perspective, the 5-year average is 3595 pending sales. 3. Closed sales are at its highest level since 2005. Between January 1 and May 30, there were 15,908 closed sales in San Diego county, an 8% increase compared to the 5-year average. That pace is the highest since 2005, which will result in the strongest year for closings since prior to the Great Recession. 4. Homeowners are still reluctant to list their homes for sale. Even though we have seen an increase in listings over the past 4 weeks, 15 percent fewer homeowners opted to list their homes for sale in June compared to the 5-year average. Why is this happening? The fear that if they sell, there will be nothing to buy. This trend is expected to continue as inventory remains muted and interest rates remain below 3.5%. 5. Pressure is building for mortgage rates to rise. Had COVID not occurred, rates would be around 3.75%. At the beginning of 2021, interest rates reached an all-time low at 2.65% and have not exceeded 3.18% so far this year. By year’s end, they are expected to rise towards 3.5%, and then settle around 3.75% in 2022. With the dramatic increase in median home prices, affordability and demand will be impacted.
Source: Steven Thomas - Reports on Housing
Congratulations to our clients who had their offers accepted and closed escrow last month! We appreciate the opportunity to be of service to help you achieve your real estate goals.
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Real Estate in the News
Luxury Home Sales Soar, Even Helping Houses That Languished on the Market for Months
Americans looking to buy a home have struggled with bidding wars and a limited number of houses for sale. But one area of the cutthroat real estate landscape is improving. It's the luxury segment, where listings are up and homes are selling at a rapid clip. The demand is so great that even "white elephants" – high-end homes that sat on the market for months before the pandemic began – are selling quickly as their owners willingly splurge on remodeling projects to spruce them up.
San Diego Pride
One of the West Coast's largest Pride celebrations, San Diego's annual event will combine exciting interactive virtual gatherings with fun, scaled-back in-person events. Pride Community Events are scheduled for July 17-18 across San Diego celebrating our diverse and vibrant LGBTQ+ community, their family and friends. See more details here.
San Diego's annual Comic-Con International, the largest comics and pop culture event in the nation, returns as an online event this summer. Attend star-studded panels, watch sneak previews, and walk the virtual exhibit hall for exclusive merchandise during Comic-Con@Home. Click here for additional information on how to claim your free badge.
Lifestyle Tips & Tricks
Backyard Envy: Spotlight the Outdoors in Your Listings Since the start of the pandemic, homeowners have put more weight on their outdoor spaces. As such, real estate listings may want to highlight what a home has to offer in the backyard, front yard, balcony, deck, or lawn space. Courtesy of Realtor Magazine
Refreshing Summer Cocktails to Cool Off with This Season
Nothing tastes better than cooling cocktails at the end of a hot day. After a day at the beach or while hosting an event, these summer cocktail recipes are the perfect way to punch up any menu.