The most important market to keep an eye on is our local one here in Southern California when it comes time to decide when to list your home. So if you’re considering a home sale soon, take a look at the local signs because they all point to the fact that demand for homes is kicking into high gear. Strong SoCal housing demand and job report signal it’s a good time to list your home!
According to the latest Trendgraphix report, demand is ramping up across Southern California. If we take a look at pending sales (red line) over the past two years, it’s clear that homebuyer demand is on the rise – and quick.
Pending sales rose 30.5% from January to February ringing in the new year and new home sales with a bang. That’s a 14.9% change from last February year and a 15.9% from this time two years ago.
Pending sales show the demand and soon sold transactions will be rising as well.
Unemployment dropped
New unemployment numbers could be a big contributing factor to the growing housing demand in our local market. Unemployment has been dropping steadily for the past few years and as of the end of 2014 they’re at their lowest level in 5 years.
According to latest update from the U.S. Bureau of Labor Statistics the California unemployment rate dropped to 7% in December 2014 and 5.6% for the country.
More reasons for the high buyer demand
The demand for the Southern California real estate market is here, all we need now are the homes to quench the thirst of homebuyers. Why are buyers finally ready to pull the trigger? Here are 3 reasons.
They’re confident
Fannie Mae’s January 2015 National Housing Survey reported that the share of consumers expecting their personal finances to improve this year hit 48 percent, an all-time survey high.
They’re primed
Buyers are primed to hit the market with the recent FHA insurance premium drops and financial easing on mortgage standards. Over 14% of bands have reported easing their standards during the fourth quarter of 2014 including reducing FICO score requirements. Insurance premiums drops and easing means more buyers than ever can now quality for a home.
They’re ready to take advantage
Interest rates have hit record lows over the past few months but they’re back on their way up according to the latest Mortgage Watch. Federal Reserve Chairwoman Janet Yellen suggested last month that the increase would come later this year. The Fed is preparing to consider rate hikes “on a meeting-by-meeting basis,” Yellen told the Senate Banking Committee.
Thank you for reading. I hope you found this information useful.
Jeff Pittman, Realtor in Ladera Ranch – Orange County, California