TAG | San Diego Real Estate Update

April 2018  –  San Diego Real Estate Update 

Can it be true?? Ladies and Gentlemen, no fools’ jokes went into the making of this statement… let it be known: there is finally a significant shift in our San Diego Housing Market! We are just seeing significant evidence of a lasting change to our local market. Basically, what had been several long discouraging months with severe inventory droughts in a scalding HOT sellers’ market has simmered down to what I would say to be a more stable market.  So small shift statistically, but what a significant impact on the market!  

Now, this news may be a shocking surprise to you – but don’t be jumping to any sky-is-falling conclusions about this now.. we are seeing only slight shifts here, nothing to indicate we are at any risk of a market collapse, I assure you! What we are seeing is a slight, and long overdue increase in our market inventory finally, though oddly enough also saw slight dip in buyer demand over last few weeks. This may seem odd, but considering all the many other factors in play here like tax season/reforms, stock market, school season, newly increased interest rates, economic stability concerns, or just some awful cocktail of them all gives just cause for buyer numbers to take slight dip momentarily here, as shown below.

However we can expect buyer demand recover soon as this recent market shift becomes more evident  – this surge of new inventory brings long-overdue relief onto our buyer market.  More inventory means buyers will finally have more options when out looking for their new dream home (and slight decline in present buyer activity is GREAT news for active buyers now! – More options, less competition, better deals!) For sellers, this shift will mean the end of price gauging and return to more strategic home sale practices.

Now you might be asking yourself, “Why is this not a sign of a correction, or market crash???” Well, when the market crashed in 2007 people were stuck with these adjustable rate mortgages which when adjusted, sent their payment through the roof, we don’t have that anymore. Rental rates were extremely low in 2007 so it was cheaper to go rent than to own, we don’t have that anymore. Our population has grown yet we have only managed to build around 22% of the housing that is needed to support those new members of our community. Therefore these signs all point to high demand for housing here.

All in all, the market is going to remain very strong for the foreseeable future, however expect to see more inventory and more options for home buyers.

Here are some stats to back that up:  

 

Closed Sales are down 15.9%,. Pending Sales are down 3.1%. The Median Sales Price was up 10.4% to $635k for Detached homes and 5.7% to $412k for Attached homes.
 
Buyers Advice: 
 
Alright, it’s time to get off that fence and buy now before interest rates go up even more – the Fed has come out and said they plan to do 2 more increases to interest rates within this year. You will definitely want to get into your new home before that happens! Also, we are finally seeing more homes hit the market, this means you can give yourself more time to be picky and make sure the home has everything you’re looking for! 
See all the new inventory for yourself (Click Here)
 
 
Sellers Advice: ​​​​​​​
 
With competition to sale higher than we have seen in last few years, you will really want to make sure your home stands out from all the rest! To do this best, you will need to make sure the home is suitably decluttered and arranged so it can be shown well, make sure the property photos are amazing & flawless, always review all marketing to make sure it is advertised correctly, and of course, make sure it’s priced right! If this sounds like a lot to do, you’re not alone & that’s why our  team created this specialty selling system that provides sellers with full service, start to finish so we when you list with us, we’ll do the rest, cut out the stress & always deliver the best! 
Ask us about our  (Hands Free Selling System)
 
 

  1. 2 beds, 2 baths
    Home size: 1,138 sq ft
  2. 3 beds, 3 baths
    Home size: 1,714 sq ft
  3. 3 beds, 2 baths
    Home size: 1,140 sq ft
    Lot size: 14.27 ac
  4. 2 beds, 2 baths
    Home size: 1,134 sq ft
    Lot size: 2.80 ac
  5. 3 beds, 3 baths
    Home size: 2,500 sq ft
  6. 4 beds, 3 baths
    Home size: 3,588 sq ft
    Lot size: 43,560 sqft
  7. 2 beds, 3 baths
    Home size: 1,246 sq ft
    Lot size: 18,730 sqft

See all Real estate matching your search.
(all data current as of 5/25/2018)

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

 

 

 

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    New Year, New Tax Reforms!

     
     
    As we near the end of this year and look on to 2018, we consider what the new year has in store for San Diego real estate… with a close ear to all that stirs up on Capitol Hill.
     
    This past year experienced one of the more consistent and predictable markets of this last decade, however as we watch this new tax bill come closer to being passed, we could see a significant impact shift our local housing market. Although the particulars to this bill are still being finalized, what we see as of now concerns the Capital Gains allowance. The new tax reform is looking to adjust the homeowner requirements from 2 out of 5 years to living in their home the full 5 out of 5 years in order to be eligible – which I can predict to have affective impacts on homeowners choosing to stay where they are vs. moving, thus increasing an already extreme shortage to our housing supply. If we see our housing inventory get even tighter in this year to come, we could see another 10-15% increase in local housing prices in 2018.
     
    But enough about predictions, here’s the facts from this last month…
    All-in-all, this has been one of the toughest 4th quarters for buyers, and one of the best quarters for sellers that we have seen in a long time.
     
     
    Buyers Advice: 
     
    If you are on the fence about buying a home, you may want to consider hopping off sooner rather than later! Considering this new tax reform and its predictable effect on our local housing market – you would be wise to buy now! Start your housing search here today!
     
     
    Sellers Advice: 
     
    We are seeing inventory levels at an all-time-low across San Diego county. This has caused home values to continue to climb! Your home may be worth significantly more than you think! To see how much your home could sell for in today’s market, find out here!
     
     

    1. 2 beds, 2 baths
      Home size: 1,138 sq ft
    2. 3 beds, 3 baths
      Home size: 1,714 sq ft
    3. 3 beds, 2 baths
      Home size: 1,140 sq ft
      Lot size: 14.27 ac
    4. 2 beds, 2 baths
      Home size: 1,134 sq ft
      Lot size: 2.80 ac
    5. 3 beds, 3 baths
      Home size: 2,500 sq ft
    6. 4 beds, 3 baths
      Home size: 3,588 sq ft
      Lot size: 43,560 sqft
    7. 2 beds, 3 baths
      Home size: 1,246 sq ft
      Lot size: 18,730 sqft

    See all Real estate matching your search.
    (all data current as of 5/25/2018)

    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: 1,138 sq ft
      2. 2 beds, 3 baths
        Home size: 1,798 sq ft
      3. 3 beds, 2 baths
        Home size: 1,140 sq ft
        Lot size: 14.27 ac
      4. 3 beds, 3 baths
        Home size: 2,344 sq ft
      5. 2 beds, 2 baths
        Home size: 1,134 sq ft
        Lot size: 2.80 ac
      6. 2 beds, 3 baths
        Home size: 1,246 sq ft
        Lot size: 18,730 sqft
      7. 4 beds, 3 baths
        Home size: 1,819 sq ft

      See all City of San Diego Real Estate.
      (all data current as of 5/25/2018)

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

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