Real Estate Market Recovery
As our real estate market moves slowly to a thorough recovery, we can see the housing crisis is indeed behind us. The values of homes are up in San Diego. Sales of homes are up, and foreclosures and short sales are at the lowest point in the past years. In 2018 we have seen the market continuing to strengthen. There is one thing that will slow the market up though. The shortage of inventory. During the summer, we typically see a buyer demand. However, with the low inventory, the demand is stronger than the supply.
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 markets inventory as low as it is, creating more inventory is crucial. For example, you may be a homeowner that has your home on the market or considering selling your home. Let’s say that you receive an offer from a buyer that asks the seller to pay their closing cost. Don’t shut down this request.
For starters, if a buyer is asking for closing cost, it is because buying a home in San Diego is not cheap. The potential home buyer has to have a big chunk of savings for a down payment. Although they may have a great income to pay the mortgage, having to pay another $8,000-$10,000 in closing costs could prevent them from buying a home. If this was the only offer that you received, by not accepting this offer, you are now not able to move on to your new house.
On the other hand, if a potential buyer puts in a contingent offer on your house and you accept it, you are creating more inventory. You are not only adding your home on the market, but that buyer has their home on the market for another buyer to buy, and you will be able to move into another home that is on the market. This will create more inventory in San Diego and other areas as well.
For more information on San Diego’s current Real Estate market, contact the McT Real Estate Group right now at 619-818-8122. We specialize in the North Park, South Park, University Heights, and the surrounding metro neighborhoods of San Diego.