TAG | Market update 2017

San Diego Real Estate Update, September 2017

Fall is Here! 

Weather is Finally Cooling Down…

But When Will this HOT Market Do the Same ??

This time of year marks the bittersweet transition out of summer & into fall. Life seems to slow down as the weather starts to cool & the kids are back in school. Similarly, the housing market has historically seen a slight cool down in buyer activity around this time.
 
However, market savvy buyers and sellers know that deals can still be made well into the school months – and with inventory levels still very low, we can expect competition to remain fierce to buy available listings. We are seeing very low days-on-market with multiple offer situations becoming less and less unusual for sellers on today’s market.

All-in-all, as San Diego may now be finally cooling down outside, it’s safe to say that the heat in this housing market is here to stay!   Here are some stats to back that up…

• Closed Sales decreased 6.4 percent for Detached homes and 11.0 percent for Attached homes.

• Inventory decreased 27.9 percent for Detached homes and 22.1 percent for Attached homes. 

• Days on Market decreased 9.4 percent for Detached homes and 15.4 percent for Attached homes. Supply decreased 31.0 percent for Detached homes and 21.1 percent for Attached homes. The prevailing trends lasted through summer.

Buyers Advice: 
 
We are so often asked the same question, “when is a good time to buy?”. Without a crystal ball, it’s hard to give a definitive answer for that question, but what we like to say is that the best time to buy is simply when you are able to buy. With home values still on the rise, there is a lot of talk that there will be an increase in mortgage rates within the year – so if you were thinking of buying in the next year or so, you should try to do so sooner than later to avoid facing higher monthly payments!
 
* Pro Tip: Speak with a lender to help determine what monthly payments you are comfortable making.. Don’t have a Lender? We have some great recommendations! 
 
 
Sellers Advice: 
 
Sellers are seeing their homes sell with multiple offers in a very short amount of time, and for Top Dollar! We are in a HOT Sellers’ Market – Sellers carry most of the control here. With more pressure on buyers to make a purchase, buyers might be willing to make more concessions to help you accept their offer and seal the deal. You may be able to ask to rent-back the home for a short period to give you more time for moving and/or make your home sale contingent upon you first finding a new place to live.
 
Of course, the best approach to help optimize your home sales return is to simply have the right agent in your corner. Be sure to find an agent that is dedicated to you & deliver your best results!
 

  1. 2 beds, 2 baths
    Home size: 1,240 sq ft
  2. 3 beds, 3 baths
    Home size: 1,734 sq ft
  3. 4 beds, 2 baths
    Home size: 2,039 sq ft
    Lot size: 5,999 sqft
  4. 3 beds, 2 baths
    Home size: 1,657 sq ft
    Lot size: 5,500 sqft
  5. 3 beds, 2 baths
    Home size: 1,498 sq ft
    Lot size: 1,742 sqft
  6. 2 beds, 2 baths
    Home size: 1,000 sq ft
  7. 4 beds, 2 baths
    Home size: 1,531 sq ft
    Lot size: 6,534 sqft

See all City of San Diego Real Estate.
(all data current as of 10/16/2017)

Listing information deemed reliable but not guaranteed. Read full disclaimer.

 

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    Is this Price Climb Over Yet??

    For the last two years, we have watched the steady climb of home prices happen across the nation. For us here in San Diego, we have actually been experiencing this rise for almost 7 years now… and shows no sign of slowing down! 

    Just this summer, prices have already made a 6% average increase across the county…that happened in just 2 months?? So after 7 years, you can imagine how significant an impact this has been on some homes!

    The climb is a direct result of the current market’s lack of inventory. We currently hold 26.7% less inventory today than we did a year ago. That means that active home sales today become hosts to lots of multiple offer situations, lots of appraisal issues and LOTS of happy sellers! 

    But we have to wonder, when is this going to slow down??

    My short answer is yes, maybe and no. Summer is coming to an end, and we can expect to see a slight decline in buyer activity during this time..however with this consistent inventory shortage plaguing our current housing market, we can’t be certain whether or not this brief lull in activity will have a leveling impact on the market.  What we need to have happen is for our inventory to increase up to a 3-month supply. This would allow for the market to finally regain balance and prices to level out to a more stable 3% rise per year. While the solution really is that simple in theory, the real world here continues to show no indication of this happening any time soon, therefore our prices will continue to climb with no signs of slowing down.

    Here are some stats to back that up…

    The Median Sales Price is up to 10.7% to $620,000 for Detached homes, and 6.7% to $405,000 for Attached homes. Closed Sales decreased to 8.6%, Pending Sales increased 5.55%, however the largest and most jarring market change is the decrease in inventory down 26.7% from last year – this caused the Days on Market time to decrease down to 12.6%.

    All in all, these indicators point to a strong, healthy market that is not showing signs of slowing down any time soon.

     

    1. 2 beds, 2 baths
      Home size: 1,240 sq ft
    2. 3 beds, 2 baths
      Home size: 1,524 sq ft
      Lot size: 6,098 sqft
    3. 3 beds, 3 baths
      Home size: 1,734 sq ft
    4. 3 beds, 2 baths
      Home size: 1,646 sq ft
      Lot size: 4,356 sqft
    5. 4 beds, 2 baths
      Home size: 2,039 sq ft
      Lot size: 5,999 sqft
    6. 3 beds, 2 baths
      Home size: 1,657 sq ft
      Lot size: 5,500 sqft
    7. 4 beds, 3 baths
      Home size: 2,300 sq ft

    See all City of San Diego Real Estate.
    (all data current as of 10/16/2017)

    Listing information deemed reliable but not guaranteed. Read full disclaimer.

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      We are feeling the pain… the inventory shortage pain!

       

      We have seen a slowdown in sales in most parts of San Diego… but we continue to see prices increase! This is because we still have a lot of buyers entering the market, presumably due to our thriving local economy, our unemployment rate being well below the national average, and we have also seen wages increase.  So what can we expect moving forward? We will continue to see the crunch on inventory which, in turn, will cause bidding wars and price increases. For homeowners who are thinking about selling? This is great news! For buyers? Not so much… However, we are expecting to see a spike in new development with lots of new construction hitting the market in the next 4-12 months, so stay tuned!

       

      Here are some stats to back that up:

      Closed sales decreased 8.7% compared to this time last year, the more shocking number is that Inventory has decreased 26.4%! Yes that is a big difference and something that needs to increase if we wish to see a more stable controlled market. This has caused our Median Sales Price to increase 10.1% across the county.

       

      July 2017 Real Estate update

      Buyers Advice: 
       
      Buyers really need to be patient, yet aggressive. Be patient by resisting the urge to jump into a deal just because the market is so competitive – wait until you find the right deal, and then be aggressive and go after it! Remember, having the right agent at the ready is a great way to ensure you will have a strong offense to close the deal.
      For helpful tips, watch my video for 3 Buying Hacks!  
       
       
      Sellers Advice: 
       
      This market is hot and when you are selling anything, timing is everything. So if you are thinking of selling this year, now is the time to do it. Make sure to hire a great agent who will be looking out for your best interest. There is a common scam we are seeing happen right now – don’t let this be you! Watch this video to learn more.
       

      1. 2 beds, 2 baths
        Home size: 1,240 sq ft
      2. 3 beds, 2 baths
        Home size: 1,524 sq ft
        Lot size: 6,098 sqft
      3. 3 beds, 3 baths
        Home size: 1,734 sq ft
      4. 4 beds, 2 baths
        Home size: 2,039 sq ft
        Lot size: 5,999 sqft
      5. 3 beds, 2 baths
        Home size: 1,657 sq ft
        Lot size: 5,500 sqft
      6. 3 beds, 2 baths
        Home size: 1,498 sq ft
        Lot size: 1,742 sqft
      7. 2 beds, 2 baths
        Home size: 1,000 sq ft

      See all City of San Diego Real Estate.
      (all data current as of 10/16/2017)

      Listing information deemed reliable but not guaranteed. Read full disclaimer.

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        The Battle Continues… the Inventory Battle that is!

        Throughout most of the County, we continue to battle an inventory shortage issue which is causing home values to significantly increase. This condition has lead many people to believe that we must be in some type of market bubble; however, the problem with this logic is that there are no valid indications of the market slowing down. Quite the opposite. We live in a market now without subprime mortgages, $0 down loans, or no stated income loans – lenders have MUCH stricter qualifications that serve as a market safeguard during a rising sales spike. Now, if we apply the law of averages, we can predict that things will eventually slow down, but so long as inventory stays this low, all signs confirm that this competitive sales market is here to stay.

        Here are the numbers I am referring to…

        June 2017 San Diego Real Estate Market updates

        Closed sales have decreased -4.3% from this time last year, even worse is the current amount of inventory is down to -25.2% !!! With such minimal levels of inventory, of course the Median sales price has increased to 8% compared to this time last year, and caused the average days on market to decrease 31.2%.

         

        Buyers Advice: 

        This market is hot, so don’t get burned and rush to buy something out of fear. Get prepared and take your time… wait for the right opportunity to arise. For helpful tips, watch my video for 3 Buying Hacks!

        Click Here to Watch Video

         

        Sellers Advice: 

        If you have been on the fence about selling, it’s time to get off! You’ve probably seen a few signs go up in your neighbors’ yards, then in no time there’s moving vans bringing in your new neighbors. It’s clear that now is a great time to sell; however, we continue to get the same questions and concerns… what to do if you need to buy a home after selling ? Well… we have a guide for that!

        1. 3 beds, 2 baths
          Home size: 1,524 sq ft
          Lot size: 6,098 sqft
        2. 3 beds, 3 baths
          Home size: 1,734 sq ft
        3. 4 beds, 2 baths
          Home size: 2,039 sq ft
          Lot size: 5,999 sqft
        4. 3 beds, 2 baths
          Home size: 1,657 sq ft
          Lot size: 5,500 sqft
        5. 4 beds, 2 baths
          Home size: 1,531 sq ft
          Lot size: 6,534 sqft
        6. 3 beds, 2 baths
          Home size: 1,131 sq ft
        7. 4 beds, 3 baths
          Home size: 1,748 sq ft

        See all City of San Diego Real Estate.
        (all data current as of 10/16/2017)

        Listing information deemed reliable but not guaranteed. Read full disclaimer.

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