With current supply constraints new homes have reached a whole new level of sanctity among home buyers, which is perhaps why buyers are acting so swiftly to snatch any available new home off the market. According to the Commerce Department, new-home sales rose 6.8 percent in April to a seasonally adjusted annual rate of 517,000.
Along with new-home sales, the median price of a newly sold home also rose in April. That median value stood at $297,300, which was an 8.3 percent increase from the same time last year.
Supply constraints have been universal, not just in the new-home market. This has helped the median price of all sold homes to continue gaining as well. The Standard & Poor’s / Case-Shiller Home Price Index increased 4.1 percent in the 12 months ending in March. This is the 35th straight month that this index has risen as a result of the inventory crunch seen in almost every market across the country.
Although housing supply has been low for quite some time, other parts of the economy have improved markedly to give home buyers a little more sense of urgency.
“It’s sort of been the recovery that never has gotten spectacular but doesn’t go away either,”said Joel Shine, chief executive of home building company Woodside Homes, to The Wall Street Journal. “Little by little, the economic trends and demographics trends are going our way.”
Luxury Home Market in La Jolla Tempers in Favor of Home Buyers
Fortunately for home buyers, not every market is as tight as the national average. In La Jolla, home buyers are actually seeing a moderation in home price gains that is consistent with what economists have been predicting.
“Home prices are currently rising more quickly than either per capita personal income…or wages…narrowing the pool of future home-buyers,” said David Blitzer, managing director and chairman of the Index Committee for S&P Dow Jones Indices. “All of this suggests that some future moderation in home prices gains is likely.”
According to Altos Research, a California-based real estate analytics company, the median home value in La Jolla recently downgraded to $2,753,923 as the amount of available properties has been on the rise. There are currently about 175 properties on the market in La Jolla, which has helped to ease demand.
Altos’ unique indicator, the Market Action Index, is currently showing a value of 28.43. This value is below the neutral mark set at 30 and is indicative of a market that favors home buyers just slightly over sellers with moderating home values. The value is still rather close to the neutral mark, so buyers and sellers will likely encounter even playing ground when it comes to negotiations in this market.
If you are interested in finding the perfect luxury La Jolla home, please don’t hesitate to contact our team of property experts today.
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