So, let's take a look at May home sales, single family (re-sale homes) had an increase of +12.8% and median priced homes were up as well +2.7% which makes it 9 months straight that the price was more than the previous year.
The condo (re-sale) market had an increase of 3.9% which is the 23rd month that condo and townhomes sales were higher than the previous year.
The national impact has been very different around the country, especially for new home construction. The sales of new homes constituted approximately seven percent of the entire housing market during the past year. At the height of the market in 2005 and 2006, new home sales were fifteen percent of the overall market.
The newly constructed homes sales in the U.S. have gone down in many states. California has not been be impacted nearly as much as other states due to the new CA tax credit. Arizona and Nevada are still struggling and hit extra hard once the Federal tax credit ended.
Well, I talked about state and national stats, now let me share what I have seen in our local market since the end of the credit. It was a little quiet right after the tax credit ended but it has rebounded quickly. I have seen quite a few buyers who were sitting on the fence decide the time has come to find a home while the interest rates are so low.
Tell me, when are you going to see interest rates around 4.7% again? If you purchased a home with a loan of $417,000 at 4.7% interest rate vs. waiting until rates go up to 5.7%, you would pay $347.50 less each month, save $4,170 a year and $41,700 in 10 years.
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