A Look at the Housing Market in Jan 2024
Hello, home hunters and real estate enthusiasts! Buckle up, because we’ve got some exciting news to share. Just when we thought the market was taking a breather, it has decided to kick off 2024 with a bang!
The U.S. Census Bureau just shared some hot-off-the-press stats with us. It seems like our national new home sales decided to shake off their winter blues and spring back into action, showing an impressive 8% increase month-over-month and a steady 4.4% climb year-over-year. This brings us to a seasonally adjusted rate of between 9.7% – 15.4%, translating to about 664,000 units sold!
What’s causing this surge you ask? Two words: Lower interest rates. Plus, a bit of scarcity in the existing-home inventory is making those shiny new homes look even more attractive, leading to a 4.2% increase in new residential home sales from 2022. In fact, in 2023 we estimated a total of 668,000 units sold!
Now let’s zoom into sunny San Diego. Over the past year from February 2023 to January 2024, we’ve seen a bit of a dip in Pending Sales, down by 18.5%. But hold on to your sun hats because the luxury market is heating up! Properties in the $5,000,001 and above range saw an increase in sales by a whopping 9.7%.
The overall Median Sales Price also had a bit of a growth spurt, jumping up by 3.7% to an impressive $850,000! The stars of the show were Condos and Townhomes with prices growing by 4.0% to $650,000 – talk about moving on up!
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In terms of how fast properties are selling? Homes priced between $
500,001 and $750,000 are flying off the market in just 27 days. On the other hand, those luxurious homes we mentioned earlier? They’re taking a little more time to find their perfect match, with an average of 68 days on the market.
Despite a decrease in inventory levels by 10.6%, our Condos and Townhomes segment is refusing to lag behind. In fact, they’ve seen an increase of 5.2%! This means we have around 1.4 months supply for Single-Family homes and 1.5 months supply for Condos.
So what does all this mean for you? Well, with lower interest rates and a surge in sales of new homes, it might just be the perfect time to consider making that dream home purchase. Or perhaps you’ve been thinking about selling? With prices on the rise and properties selling quickly (especially those in the $500,001 to $750,000 range), it seems like a fantastic time to put your property on the market!
As for those looking to invest in the luxury market, it’s worth noting that while these properties may take longer to sell, the increase in sales indicates a growing demand. So, this could be an excellent opportunity for long-term investment.
In conclusion, whether you’re looking to buy, sell or invest, San Diego’s real estate market continues to show promising trends. With a steady rise in median sales prices and a booming luxury market, there’s no better time than now to dive into this sunny real estate paradise!
Data Source Credit: Greater San Diego Association of REALTORS®
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