News from the Wall Street Journal states that the housing market is officially recovering, but what does that mean for homes for sale in Encinitas? A new study shows that homes for sale in Encinitas, as well as California real estate in general, are making a comeback. So signals that we have finally reached a point of recovery?
- Sales Volume – When comparing the numbers, California had $129 billion in sales in the year 2000. When the market was at its peak in 2005 sales volume reached $327 billion. The current predicted sales volume for the year 2012 is up 8% over 2011 numbers at $154 billion, with projections for 2013 up an additional $8 billion over 2012 numbers.
- Inventory – To put this in perspective, inventory on homes in January 2006 before the recession hit was at 5 to 6 months. At the height of the housing market crisis inventory was as high as 16 months. As of the end of the first-quarter of 2012, inventory was at less than 4 months in California, showing signs that the state may be entering the early stages of a seller’s market – making it a better time than ever to take advantage of buying real estate in Encinitas.
- Housing Affordability – During the first-quarter of 2000 only about 35% of Californians could afford to buy a home. As of the second-quarter of 2012 it is approximated that 56% of California residents can afford to buy a home.
Purchasing a home is still one of the best long-term investments you can make, and interest rates on mortgages won’t stay this low forever, so take advantage of the opportunity to buy a home from an Encinitas real estate agent while it remains a buyer’s market.