San Bernardino Real Estate Market Update: Housing market trends, Prices and looking Beyond, by Danon Burnside.

SALES.

In January this year, home sales in San Bernardino were up 20.7% in a year, as 2,608 homes were sold. A figure last seen in 2006. But the numbers dropped by 11% in June this year and by 10% from April. However, new construction sales did go up 20% from last year. With the trend that has been seen in San Bernardino, the sales were expected to keep soaring, but as the prices went up, home affordability went down. In fact, home sales have been going down since April. The decrease can be attributed to heated bidding wars that might have seen would-be-homeowners exit the market even though May was the busiest month with home sales.

MARKET DAYS.

Inventory in San Bernardino is fast-moving, even with the limited inventory. Homes are spending less and less time on the market. According to Realtor.com, homes listed are spending an average of 50 days on the market as of June 2021, which is a drop from April when they spent an average of 51 days and 53 days the month before, according to Realtor.com. The demand and supply in May hit a balance, but the housing market is still essentially a seller’s market. Homebuyers are having to have heated bidding wars to get their dream house. Unfortunately, some might exit the market.

PRICES.

The competitive nature of the market and the low supply have blended and formed a perfect cocktail that has seen the market boom and the prices soar. May 2021 witnessed the prices for singlefamily homes rise by 25.7% year-over-year. The median listing price and median sold price have been on the rise as well. The median listing price for May 2021 was $424,000, while the median sold price was $430,000. The median listing price steadily increased to $439,000, and the median sold price was $440,000. As of June, people paid 1.94% over the listing price. Prices will continue to rise through the year.

LOOKING BEYOND:

Is this a good time to buy a house? Low-interest rates have created the illusion that homes are more affordable. When the federal reserve first slashed interest rates, homes were affordable, but 12 months from then, that isn’t the case anymore. Home appreciation has made homes even more expensive. You might be able to get a home at a relatively cheap interest rate but pay well over the median listing price. This means you are more likely to make higher mortgage payments than the pre-pandemic median listing price. But if you are a seller, it will be a great time to enter the market; you are going to make more with the current price appreciation. On the other hand, if you are a buyer, roll up your sleeves, inventory is tight, and you are going to table your best offer.

Sources:

https://www.realtor.com/realestateandhomes-search/San-Bernardino_CA/ overview https://www.neighborhoodscout.com/ca/san-bernardino/real-estate https://californianewstimes.com/san-bernardino-county-home-sales-drop-11after-62000-price-jump-san-bernardino-sun/409743/