In February 2024, Kyle Whissel, renowned real estate expert and founder of Whissel Realty Group, shared his insights on the San Diego and Riverside housing markets. With over two decades of experience and a background in economics, Kyle is uniquely positioned to provide valuable foresight into market trends.

Understanding Market Dynamics

Kyle begins by emphasizing the importance of looking ahead in the real estate market rather than relying solely on past data. He highlights three key metrics that offer a glimpse into future market movements:

1. Median List Price Trends

While many focus on median sold prices, Kyle tracks the median list prices of homes entering the market. This metric serves as a predictor of future trends. He notes a recent upward trend in median list prices, indicating potential appreciation in the market.

2. Number of Property Price Decreases

In appreciating markets, the number of homes with price decreases tends to decrease. Kyle observes a significant decrease in such instances, suggesting a robust market where sellers aren't forced to reduce prices to attract buyers.

3. Market Action Index

The Market Action Index, which measures the rate of sale versus available inventory, is another crucial indicator. Kyle mentions a notable uptick in this index, indicating increased activity in the market and a potential shortage of inventory.

Market Projection: Heading Towards a Seller's Market

Based on these metrics, Kyle predicts a shift towards a seller's market with increasing prices. He highlights the discrepancy between current market realities and media narratives, which often lag behind actual trends.

Implications for Buyers and Sellers

For Buyers:

Kyle advises potential buyers to act swiftly, emphasizing the benefits of purchasing now to capitalize on future equity gains. Buying in an appreciating market can result in substantial returns in the coming months.

For Sellers:

Sellers, especially those looking to upgrade, are in a favorable position. Kyle recommends taking advantage of rising prices by selling and moving up to larger assets. This strategic move allows sellers to maximize their gains in an appreciating market.

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