California REALTOR® optimism about the housing market remains high as California consumers remain relatively bullish on selling and, despite a highly competitive market environment, relatively undaunted on buying as well. This is due in large part to a gradually improving picture of California’s pandemic numbers and the corresponding growth in the broader economic indicators in the state. However, the prospect of rising rates is creating more urgency for would-be buyers, which is pushing prices up and affordability down relatively.
California Housing Market Continues to Grow in First Week of May: Based upon the first week of sales in May and more complete reporting on closed sales in April, California should see an acceleration in the market for last month. Every week of April recorded a 40%+ increase from the same point in 2020. In addition, this momentum appears to have carried forward into the first month of May, which was 52.5% above the first week of May last year. REALTOR® optimism in our weekly survey was also amongst the highest we’ve measured since the onset of the crisis.
Public Health Numbers Remain Encouraging: The number of new coronavirus cases did not drop dramatically last week, but the 7-day average for new coronavirus cases remained below 2,000 for much of the week. The raw volume of new COVID-19 cases did rise above 2,000 for two days last week, and more than 100 deaths were recorded over the past two days, but overall, California’s public health numbers continue to improve.
Forbearance Numbers Continue to Improve: Less than 4.5% of all mortgages are currently in forbearance according to the latest weekly data from the Mortgage Bankers Association. That is down slightly from the week before and almost half the forbearance rate from its peak in June 2020. Encouragingly, only 15% of those homeowners who have gotten out of forbearance have no plan in place, while the remaining 85% have either never missed a payment (25%), already paid back in a lump sum (14%), added the missed payments to the end of the loan (27%), modified their loan to make it more affordable (10%), amortized the missed payments in over a period of time (1%), or paid off their entire loan in full (7%). These are encouraging statistics from the standpoint of future foreclosures.
Mortgage Applications Ease from Previous Highs: Last week saw the 49th consecutive increase in new mortgage applications for home purchases on a year to year basis, but the pace of growth dipped from more than 50% to “just” 34% last week. However, on a weekly basis, the purchase index has been falling from its cycle-high of the previous week. Demand remains strong, and C.A.R.’s monthly consumer survey showed that the percentage who thought it was a good time to buy in April remain undaunted thus far.
Rates Hold Steady Just Under 3%: The typical rate for a 30-year fixed-rate mortgage inched up to 2.98%—a modest rise from 2.97% the previous week. However, 10-year Treasury rates increased for the first time since March, so we should expect mortgage rates to rise in coming weeks. Normalizing inflation as the economy recovers will likely cause treasury rates to rise, but with unemployment remaining stubbornly high, core inflation is not expected to take off over in the short run.
Affordability an Even Tougher Challenge with Rising Rates: Although housing demand remains robust, the chronic lack of supply and consequent competition amongst homebuyers is pushing prices up much more quickly than incomes. Although several rounds of stimulus have helped to fend of significant declines in personal income, prices are rising much more quickly leaving many Californians even more challenged by affordability. This will become even more acute as interest rates rise, because it magnifies the budget effect of rising prices. Unfortunately, the prospect of rising rates could be creating an additional sense of urgency for buyers, which is pushing up prices even faster.
Search Results: 2,114 Properties
Sold Price
Last 3 mo.
Median
$778,852
Sale Price
Today
Median
$989,750
Days on Market
Last 3 mo.
Average
73
2670 Cazadero Dr Carlsbad 92009
For Sale
$1,595,000
Bedrooms: 4
Baths: 2
Sqft: 3,088
Broker: The Avenue Home Collective
MLS: #230005211SD
3428 Sunset Drive Fallbrook 92028
For Sale
$924,000
Bedrooms: 3
Baths: 2
Sqft: 2,144
Broker: North County Associated Brkrs
MLS: #NDP2302027
1997 Calle Madrigal La Jolla 92037
New Listing
$2,995,000
Bedrooms: 6
Baths: 7
Sqft: 3,932
Broker: Keller Williams La Jolla
MLS: #230005516SD
12051 Caminito Cadena San Diego 92128
For Sale
$1,350,000
Bedrooms: 3
Baths: 2
Sqft: 2,148
Broker: San Diego Sunrise Realty
MLS: #230001165SD
4835 Dehesa Rd El Cajon 92019
For Sale
$1,395,000
Bedrooms: 4
Baths: 3
Sqft: 4,340
Broker: Century 21 Award
MLS: #230004588SD
14102 Kelli Ln El Cajon 92021
New Listing
$799,000
Bedrooms: 4
Baths: 3
Sqft: 1,783
Broker: HomeSmart Realty West
MLS: #230005523SD
781 N Stage Coach Lane Fallbrook 92028
For Sale
$899,900
Bedrooms: 4
Baths: 2
Sqft: 2,392
Broker: Keller Williams Realty
MLS: #ND23048485
1961 Frankfort Street San Diego 92110
New Listing
$1,299,000
Bedrooms: 2
Baths: 2
Sqft: 1,830
Broker: Fontaine Realty Group, Inc
MLS: #NDP2302154
999 N Pacific St B222 Oceanside 92054
New Listing
$799,888
Bedrooms: 1
Baths: 1
Sqft: 760
Broker: Keller Williams Realty
MLS: #230005522SD
10611 Itzamna Drive La Mesa 91941
For Sale
$599,000
Bedrooms: 5
Baths: 3
Sqft: 3,074
Broker: SANDY JOHNSTON BROKER
MLS: #EV23049064
3588 Twilight Lane Oceanside 92056
For Sale
$599,800
Bedrooms: 2
Baths: 2
Sqft: 1,461
Broker: So Cal Properties
MLS: #OC23042491
4355 Samoset Ave San Diego 92117
For Sale
$898,000
Bedrooms: 3
Baths: 1
Sqft: 1,214
Broker: Coldwell Banker Realty
MLS: #230005306SD
1714 Hicks St Oceanside 92054
For Sale
$1,100,000
Bedrooms: 3
Baths: 2
Sqft: 1,603
Broker: Frank Carpenter Real Estate
MLS: #230005155SD
848 La Tierra Drive San Marcos 92078
New Listing
$550,000
Bedrooms: 2
Baths: 2
Sqft: 1,248
Broker: Berkshire Hathaway HomeService
MLS: #NDP2302121
675 S Sierra Ave 39 Solana Beach 92075
For Sale
$1,295,000
Bedrooms: 2
Baths: 3
Sqft: 1,210
Broker: Compass
MLS: #230005369SD
4127 38th St 12 San Diego 92105
For Sale
$359,000
Bedrooms: 1
Baths: 1
Sqft: 621
Broker: Top Notch Realty, Inc.
MLS: #230005375SD
9750 Mesa Springs Way 47 San Diego 92126
New Listing
$395,000
Bedrooms: 1
Baths: 1
Sqft: 775
Broker: Tobin Assoc. And Realtors, Inc
MLS: #230005500SD
7745 El Cajon Blvd 6 San Diego 91942
New Listing
$585,000
Bedrooms: 2
Baths: 3
Sqft: 1,285
Broker: Compass
MLS: #230005518SD
190 Del Mar Shores Tce 70 Solana Beach 92075
New Listing
$1,250,000
Bedrooms: 1
Baths: 1
Sqft: 838
Broker: Pacific Sotheby's Int'l Realty
MLS: #230005461SD
13415 Pequot Dr Poway 92064
For Sale
$979,000
Bedrooms: 3
Baths: 2
Sqft: 1,399
Broker: Keller Williams Realty
MLS: #230005401SD
6246 Castejon Dr La Jolla 92037
For Sale
$3,195,000
Bedrooms: 4
Baths: 3
Sqft: 2,807
Broker: Coldwell Banker Realty
MLS: #NDP2302072
7031 Sitio Corazon Carlsbad 92009
New Listing
$2,050,000
Bedrooms: 4
Baths: 3
Sqft: 2,983
Broker: Fontaine Realty Group, Inc
MLS: #NDP2302149
1030 Robinson Ave 203 San Diego 92103
For Sale
$615,000
Bedrooms: 2
Baths: 2
Sqft: 1,050
Broker: RE/MAX City Real Estate
MLS: #230002385SD
4383 Kansas St Unit 2 2 San Diego 92104
For Sale
$595,000
Bedrooms: 2
Baths: 2
Sqft: 857
Broker: Dentt Properties Res., Inc.
MLS: #230004750SD