Real Estate Watch – Deanne Motsenbocker – Portfolio Real Estate
The Del Mar Racing Season is Off and Running – Are 92067 Home Prices Doing the Same?
Nationwide reports indicate that luxury home prices are expected to continue to climb throughout 2015. JP Morgan points to six macro trends that are helping to drive up United States luxury home prices:
- The U.S. economy is picking up speed. After several years of private sector healing we are now entering expansion of a new business cycle.
- Higher equity prices benefit luxury housing sector. Luxury home prices have been on the upswing since 2012.
- High-income households are more confident about the U.S. recovery. Wealthier households have more exposure to the stock market. As equity prices climb, home buyers feel more confident – further driving up competition for high-end properties.
- Limited supply is pushing up prices.
- Many overseas buyers add to sector strength. Overseas investors continue to see the U.S. housing market as a safe haven.
- Even after an impressive rally, prices in the luxury market have not risen as dramatically as other market segments and there are still good deals to be had. Though interest rates may be ticking up, they remain near historic lows.
All this being said, we must remember that real estate is a local business and in Rancho Santa Fe here is what we are seeing in the latest June stats for detached homes in 92067:
- Pending sales are up 21%
- Active listings are down 3.9%
- Average time on market is down 24%
Looks like the luxury market is off to the races! But wait just a minute! If you look at year-to-date it shows that closed sales volume are up, but if you look at June 2015 compared to June 2014 it shows that only 15 homes sold this year versus 24 that sold in June 2014. That puts year-over-year closed volume down 37%. What we have to watch for now is whether this indicates a slowing trend.
Stay tuned to see what happens as we round the next bend in the track! For specific information on what your home is worth please contact me, Deanne Motsenbocker.