The Braceland Report – California Housing Inventory March 2024

Looking at California housing inventory levels on this one.  Just a quick refresher, six months of housing inventory creates a neutral or balanced market where both buyers and sellers are on equal footing and neither really has an advantage in negotiations.  A seller’s market is one in which there is less than six month’s inventory, and a buyer’s market is one in which there is more than six month’s inventory. Rules of supply and demand apply.  Less inventory means more demand and seller advantage.  More inventory means less demand and buyer advantage.

We can see here that we are well below that magical six months of inventory, and only at a current inventory of 3.2 months, even less than last year.  Further we can see that it’s been well over a decade since California has come anywhere near six months of housing inventory.  This is great news for those of you that own a home and wish to sell it at some point.

Things to See and Do in Escondido California - Queen Califia's Magical Circle

 

Things to See and Do in Escondido California - Queen Califia's Magical Circle

Queen Califia's Magical Circle is the last major international project created by artist Niki de Saint Phalle.  Inspired by California's mythic, historic, and cultural roots, the garden consists of nine large-scale sculptures, and circular "snake wall" bearing the brilliant, unique mosaic ornamentation that is an unmistakable part of the artist’s later work.

Queen Califia's Magical Circle is situated in North County San Diego in the city of Escondido, California at beautiful Kit Carson Park, just minutes from interstate 15, and is open to the public on Tuesdays, Thursdays, and Saturdays from 9:00 AM until 12:00 PM.

The Braceland Report – Selling a Home - Market Time March 2024

 

Market time gives us a good idea of how long it should take to sell a home.  It also tells us if the housing market is hot or cold, or somewhere in between.  As we can see from the data, market time commonly follows seasonal trends in addition to being influenced by larger economic forces.  Although the market appears to be slowing on the graph, that’s typical of the winter season in California residential real estate.  The latest data here is from January.  Housing data is often a look back a month or two, because it takes time to compile and process.   I my experience, as an active real estate broker, I can tell you the housing market is already waking up and becoming more competitive as we approach spring time.

Market time will typically drop starting in the spring, through the summer as more and more buyers and sellers enter the market.  Market times will climb again as we approach autumn, and people start to turn their attention to family and the approaching holidays.  Once the new year has passed, many people begin or resume their relocation planning.

Navigating Rising Mortgage Rates

 

Mortgage rates play a significant role in your home search. As rates go up, they impact how much you’ll pay on your monthly mortgage payment, which directly affects how much home you can comfortably afford. This graph shows how even a quarter-point increase in rate can have a big impact on your monthly payment.

With mortgage rates on the rise, you’ve likely seen your purchasing power impacted already. Instead of delaying your plans, today’s rates should motivate you to purchase now, before rates increase even more. Use that motivation to energize your search and plan your next steps accordingly.

The best way to prepare is to work with one of our trusted real estate advisors at Braceland Homes. We can connect you with a trusted lender, help you adjust your search based on your budget, and make sure you’re ready to act quickly when it’s time to make an offer on a home.

The Braceland Report – California Housing Prices March 2024

 

Checking out the latest with home prices here.  So the quick takeaway from this data is that median home prices in California dipped slightly below $800,000.00 and we had a 3.8% drop from the month before.  If we take a step back though, and this is important for you home buyers, of course we have lots of little ups and downs, but look at the overall, relentless, upward trend in home prices since 2009!  Even the little drop we just had…its still 5.5% more expensive than the same time last year!

To me the message here is clear, if you want to purchase a home, and you have the means to make that happen, then buy a home now!  Get on board this escalator and ride it to the top.  Stop fretting over the new interest rate reality, and start building equity in your new home now.  Hopefully interest rates will drop back down.  If so, you can just refinance your home loan to take advantage of the better rates.  You know what you won’t be able to do?  You won’t be able to benefit from today’s prices, if you don’t take action today.

The Braceland Report - California Home Sales March 2024

 

Here we’re looking at single family home sales. This data goes back almost twenty years and gives us a good look at what the housing market has been doing, and where its trending. 

If you look to the left, you can see the impact of the big housing crisis where homes sales ground to a halt and bottomed out in 2007.  We see another huge dip in 2020 when COVID took hold, and again in late 2022 when the FED substantially raised interest rates.

The housing market still hasn’t really recovered from the new interest rate reality.  Things have been very slow in the residential real estate world here in San Diego and across all of California, but you can see here on the right, we’re starting to see signs of life in 2024 as we move into the busy spring and summer home selling seasons!

Pricing Your Home

 

Which House Price...Should I Choose To Sell My Home

The price you set for your house sends a message to potential buyers. Price it too low and you might raise questions about your home’s condition or lead buyers to assume something is wrong with the property. This could also potentially leave money on the table which decreases your future buying power.

On the other hand, price it too high, and you run the risk of deterring buyers. When that happens, you may have to reduce your price to try to re-ignite interest in your house after it sits on the market for a while. But be aware that a price drop can be seen as a red flag for some buyers who will wonder why the price was reduced and what that means about the home.

Think of pricing your home as a target. Your goal is to aim directly for the center – not too high, not too low, but right at market value. Pricing your house correctly increases the chance you’ll have more buyers who are interested in purchasing it. That also makes it more likely you’ll see multiple offers and a higher sales price. Ideally you want buyers battling each other...not you battling just one buyer.  Additionally, when homes are priced right, they tend to sell quickly.

The Braceland Report - Southern California Housing Market Update March 2024

 

Right now, we have a 2.2% increase in home sales over this time last year.  The median price of a home in southern California is currently $790,000.00…and that’s an increase of 7% over last year.  Current housing inventory stands at 3.2 months, and we know that anything below six month’s inventory is a seller’s market.  Market time is 30 days, and sales to list price ratio is just below 100%.  

For sellers, all this means you’re still in good shape, but your home isn’t going to sell overnight, and you may not get your full asking price.  What if you’re a buyer? You folks are going to be spending a pretty penny, and you’re probably going to face at least some competition to get the home you want.