To kick off 2018, home sales remained consistently slow in the beginning months of the new year. In March, single-family home sales had increased nearly twenty-four percent while condominiums and townhouse had increase twenty-one percent compared to the previous months. It is not unusual to see a rise in the housing market after having a slow first quarter, given that an increase in buyer demand will reflect an increase in home prices.
Despite the change in demand for home prices, it is evident that the slow start in the first quarter sales in 2018 was nine percent lower when compared to the first quarter sales in 2017. Due to low unemployment rates, low interest rates and strong job growth rates, home sales in the first quarter of 2017 were at the highest they have been since 2005. As more houses are being sold off the market, the remaining homes on the market's prices began to rise. Due to the lack of home construction throughout the recession, homes on the market were not correlating with the population growth over the years, creating an increased demand for homes.
When comparing the median home prices in the 2005 housing boom, in 2017 and in 2018, we can see a rise in home prices. In 2005, the median home price was $500,000; increasing to $529,000 in 2017 and peaking at $635,000 for single family homes in 2018. This indicates a four percent increase in March alone of 2018, while townhouses and condominiums have dropped a total of three percent to $421,000.
As demand continues to rise, competition begins increase, creating an overall decrease in the amount of time a home was spending on the market. In 2017, homes were remained on the market for 31 days on average, before being sold. In 2018, specifically in March, homes were sold on average after 26 days on the market. The highest singles family homes sales so far in 2018 have been in Fallbrook, Oceanside, Carmel Valley, Poway and East Oceanside.