Prices on homes for sale in Encinitas are projected to rise for the rest of the year and into 2013, but restricted lending and low inventory may curb growth on homes for sale in Encinitas.
As reported by the California Association of Realtors, Encinitas homes – as well as homes across the state of California – are expected to continue their upward trend from lows seen in 2011.
In specific areas of California, like the Inland Empire and Central Valley areas, sales are being restricted due to inventory, where there is an extreme shortage of available homes. The real estate industry considers an inventory of six to seven months to be balanced and currently the statewide average inventory sits at about 3 months, down from 16 months at the height of the housing crisis.
Another issue is what is being referred to as “defensive lending” where lenders extend new loans to ensure the repayment of existing loans, essentially selling mortgages on the secondary market.
For 2011 the state saw a significant decrease in the median home price (approximately 6.2%), but that median home price is expected to rise 11% in 2012 and reach $317,000, with growth extending to 2013 and median home prices expected to reach $335,000.
One major benefit of the low inventory is that California has seen its highest share of homes for sale with multiple offers in over 12 years, with real estate agents in Encinitas, Carlsbad, Los Angeles, and more stating that they had been in multiple offer situations with many homes averaging about 4 offers each. These multiple-bid sales of course raise the selling price and demand.
You can read the entire summation of the findings of the California Association of Realtors here and gain more insight into why the housing market is taking a positive turn and why it is a great time to buy or sell a home in Encinitas.