Real Estate Market Recovery
As our real estate market moves slowly toward a thorough recovery, we can see that the housing crisis is indeed behind us. The values of homes are up in San Diego.Home sales are up, and foreclosures and short sales are at their lowest levels in recent years. In 2018, we saw the market continuing to strengthen. One thing that will slow the market up, though, is the shortage of inventory. During the summer, we typically see a buyer demand. However, demand is higher than supply due to low inventory.
Industry Experts Express Their Thoughts On The Subject
Here are the thoughts of a few industry experts on the Real Estate Market:
Lawrence Yun, Chief Economist at National Association of Realtors:
“The worsening inventory crunch through the first three months of the year inflicted even more upward pressure on home prices in a majority of markets. Following the same trend over the last couple of years, a strengthening job market and income gains are not being met by meaningful sales gains because of unrelenting supply and affordability headwinds.”
Sam Khater, Chief Economist for Freddie Mac
“As we head into late spring, the demand for purchase credit remains rock solid, which should set us up for another robust summer home sales season. While this year’s high rates – up 50 basic points from a year ago – have put pressure on the budgets of some home shoppers, weak inventory levels are what’s keeping the housing market from a stronger sales pace.”
Javier Vivas, Director of Economic Research for Realtor.com
“The dynamics of increased competition and buyer frustration are unlikely to change…In fact, the direction of the trend is pointing to a growing mismatch between the pool of prospective buyers and existing inventory.”
With our real estate market’s inventory at an all-time low, creating more is crucial. For example, you may be a homeowner who has your home on the market or is considering selling your home. Let’s say you receive an offer from a buyer asking the seller to pay their closing costs. Don’t shut down this request.
For starters, if a buyer is asking for closing costs, it is because buying a home in San Diego is not cheap. A potential homebuyer needs substantial savings for a down payment. Although they may have a high income to pay the mortgage, paying another $8,000-$10,000 in closing costs could prevent them from buying a home. If this were the only offer you received, not accepting it would prevent you from moving on to your new house.
On the other hand, if a potential buyer makes a contingent offer on your house and you accept it, you create more inventory. You are not only adding your home to the market, but the buyer will also have their home on the market for another buyer, and you will be able to move into another home on the market. This will create more inventory in San Diego and other areas.
For more information on San Diego’s current Real Estate market, contact the McT Real Estate Group right now at 619-736-7003. We specialize in the North Park, South Park, University Heights, and the surrounding metro neighborhoods of San Diego.