Housing News Keeps Getting Better

At this rate, the housing market will be favoring sellers in no time.  The most recent numbers out show that  "Bond yields pushed mortgage rates slightly lower this week," said Frank Nothaft, Freddie Mac vice president and chief economist. "Low mortgage rates are helping to keep housing very affordable. Seven of the top eight most affordable months occurred during this year, according to the National Association of Realtors' (NAR) Housing Affordability Index, which dates back to 1971. As a result, pending sales of existing homes rose for the sixth straight month in July, a trend not seen since the NAR began reporting data in 2001. Moreover, July's sales were the strongest since June 2007.

San Diego is one area that will help lead the way back.  We are seeing multiple offers on all units below a half million dollars which contributes to bidding the prices up. In the areas where the majority of the foreclosures are present, nothing gets sold at the list price anymore, some lucky investor or homeowner ends up paying 5 to 20% above what the bank was asking but still ends up with a great deal.

If you look around San Diego, you will still see very few construction projects. This bodes well for San Diego's recovery as the inventory may remain tight for many years to come.

If you have any questions, please email me or give me a call.