San Diego Real Estate Market
The San Diego Real Estate Market is booming and we all know that the best time to sell anything is when the demand is high, and the supply is low. The last two major reports issued by the National Association of Realtors revealed information that suggests that right now continues to be a great time to sell your San Diego home. Let’s take a close look at the Pending Home Sales Report and Existing Home Sales Report on a national level and see how it correlates to the San Diego real estate market.
Pending Home Sales Report
The latest report announced that pending home sales (homes going into contract) are down 2.3% from last year and have continued to fall on an annual basis for seven straight months.
Lawrence Yun, NAR’s Chief Economist, had this to say:
“The reason sales are falling off last year’s pace is that multiple years of inadequate supply in markets with strong job growth have finally driven up home prices to a point where an increasing number of prospective buyers are unable to afford it.”
Demand for housing is strong and will continue to grow in 2019. Without an influx of new listings for sale, pending home sales will continue to decline. Listing now means you will be able to take advantage of the demand currently in the market. Not only is this true on a national level, but it also applies to the local San Diego real estate market. If you are curious about your San Diego home value, we can give you an accurate assessment of your current market value.
The Existing Home Sales report
The most important data point revealed in the report was not sales-based but was instead the inventory of homes for sale (supply). The report explained:
- Total housing inventory decreased 0.7% to 5.34 million homes available for sale in July
- This represents a 4.3-month supply at the current sales pace
- Sales are now 1.5% below a year ago
- In real estate when there is less than a 6-month supply of inventory, we are in a seller’s market. The San Diego real estate market has well below a 6-month supply, so will most likely continued home appreciation.
- When we have 6-7 months we will be in a neutral market, where prices will increase at the rate of inflation.
- Lastly, when we have more than a 7-month supply, it means we are in a buyer’s market and should expect depreciation in home values.
We are (and will remain) in a seller’s market and prices will continue to increase unless more listings come to the market.