The media is capitalizing on stoking people’s fears about the market, but I’m here to tell you not to buy into the hype.
Is the San Diego real estate market poised for a crash? Today I want to dissect the doom and gloom the media has been reporting with regards to the real estate market.
You might have heard from these media outlets that inventory is growing, that there are tons more homes for sale. Actually, the number of homes for sale has gone up 14.3%.
What does that really mean? In a normal real estate market, we’d have about six months’ worth of homes for sale. While inventory did increase, it increased from 2.1 months to 2.4 months. That’s half of what we’d see in a normal market.
The media has also been reporting that the days on market—the time it takes for a home to sell—is up as well. It’s taking 3.8% to 4% longer to sell a home, meaning we went from 26 days on the market to 27 days.
However, the media doesn’t report things that way; they’ve been saying that the market is poised for a crash and that everything is going to come tumbling down.
But I’d like to say that there’s no cause to freak out. The market isn’t crashing, we’re just getting closer to a normal market. We still have well below normal inventory and it’s still taking well below the normal two or three months to sell a home. The market is still strong.
The good news is if you’re a buyer, you no longer have to compete as much with other buyers for a home. If you’re a seller, homes are still selling and a lot quicker than they would in a normal market. Further still, there are fewer homes on the market than there would be in a normal market. It’s the best of both worlds.
The bottom line is don’t freak out about the market and don’t buy into the doom and gloom the media is reporting.
If you have any questions, please feel free to reach out to us. We would love to help you out.