San Diego County home prices higher by 2.8%

San Diego area home prices ticked up 2.8 percent annually in September, perhaps signaling that fears of a looming housing slowdown earlier this year were overblown.

The S&P CoreLogic Case-Shiller home price index — a leading measure of U.S. home prices — found that the September year-over-year home price gains in San Diego mirrored the trend nationally.

Case-Shiller data released Tuesday put overall home price increases across the U.S. at 3.2 percent in September compared with the same month last year. Phoenix led the way for September with 6 percent annual gain. Charlotte hit 4.6 percent and Tampa posted a 4.5 percent increase.

read more at: https://www.sandiegouniontribune.com/business/real-estate/story/2019-11-26/san-diego-home-prices-rebound-in-september-easing-fears-of-a-downturn

Fewer homebuyers stuck paying above the asking price

For homebuyers and sellers, the original list price is the conversation starter, yet rarely the final word – only about 15% of homes in the largest metro areas sold for the seller’s original asking price during 2019’s second quarter, according to real estate data firm CoreLogic.

Discounted sale prices occurred on 61% of homes sold, Corelogic reported, up from 57% in late 2018.

Tight markets subject to bidding wars and sale prices above the ask, of course, get the most attention these days. And those conditions continue, to varying degrees, in San Francisco. Seattle, Minneapolis, Denver, Boston, Los Angeles and Washington D.C., according to Corelogic data.

But sale prices below the list price were common in Miami (80% of sales below list), Chicago and Houston (70%) and other major markets. Buyers and sellers need to be aware of the new reality.

Another real estate company, Knock.com, which helps people buy and sell with bridge financing, expects discounts to list price to increase in 2019’s fourth quarter. Two in three home sales in the quarter will come in below the list price, and the average discount will be near 4%, Knock estimates.

Knock predicts that more than 80% of home sales in Miami will come in under the list price, and the average discount will be near 6%. In Chicago, Houston, New Orleans and Hartford, at least 75% of home sales are expected to be at a final price that is below the original list price. The average discount in those markets is forecast to be about 5%.

The cause isn’t a soft market. Of the aforementioned areas, only Chicago price gains have failed to keep pace with inflation over the past year. Some of the markets where buyers are enjoying strong negotiating leverage are also among the best for first-time homebuyers.

read more at: https://www.rate.com/research/news/homebuyers-paying-above-asking-price

San Diego home prices, sales up in October

San Diego County’s median home price was $573,500 in October, lifted by a big increase in sales.

There were 3,485 home sales, up 10.1 percent compared to the same time last year, said CoreLogic data provided by DQNews. Experts have largely attributed the turn in the market to falling interest rates.

The median price of $573,500 is an increase of 2.6 percent in a year. That is an improvement over the past few months, which showed prices flat in San Diego County. However, at the same time last year, prices were up 5.6 percent in a year.

San Diego County was not alone in this trend. In Southern California home sales were up around 8 percent, and median prices moved up slightly. The uptick in prices seemed to correlate with other indicators of a rebounding market, including a drop in the number of price reductions in San Diego County and across Southern California from earlier this year.

Interest rates for a 30-year, fixed-rate mortgage were 3.69 percent in October, said Freddie Mac, down from 4.83 percent at the same time last year.

While lower interest rates may have helped potential buyers, home inventory was tightening. There were 6,082 homes for sale in October, said the Greater San Diego Association of Realtors, down from 7,918 at the same time last year.

read more at: https://www.sandiegouniontribune.com/business/real-estate/story/2019-11-21/san-diego-home-prices-sales-up-in-october