What is going on in the San Diego Real Estate Market in January 2020? Kyle Whissel explains these stats and if it’s a good time to buy or sell a home in San Diego right now.
🔽 Homes For Sale Down ~ 8%
🔼 Homes Going Into Escrow Up ~16%
🔽 Inventory Down ~39%
What does this mean to YOU if you are looking to buy or sell a home in San Diego?
Kyle with Whissel Realty Group in San Diego is here to give you the information that you need to know exactly what’s going on in the San Diego real estate market here in 2020. As always, when you watch our market update videos we are not going to report the traditional stuff that the media is reporting which is going to be like things like the average sales price to the number of homes that have closed. The reason we don’t report those things is those are talking about what clothed. Well, what recently closed actually went into escrow to three months prior to that. So a lot of times the data that you’re getting from the traditional media is very, very outdated and you don’t want outdated info.
If you’re thinking about making a buying or selling decision, you want up to the minute current information on what’s going on in the market and that’s what I’m about to give you.
So the first thing that we always like to look at is the number of new listings that are coming on to the market for sale. That numbers is down 8.3% from this same time a year ago.
On the flip side of things, we like to look at the number of listings that are going pending or going into escrow. That number is up 16.3%.
So fewer homes are coming on the market, more homes going off the market. What does that create? Well, that creates a shortage of inventory. Inventory is down 39.1% from the same time a year ago, we’re sitting at 1.4 months of inventory. In a traditional market, a balanced market, we usually have about six months of inventory. So we have 25% of what we’re going to see in a balanced market.
So, anytime inventories low, it’s also going to start driving down the days on market or the time it takes to sell that’s down 12.8% from a year ago.
So the market is really really set up to be tight on inventory. And a lot of that is because rates are super low right now. So buyers are gobbling these properties up extremely quickly. There are not a lot of options out there. So what that’s creating is bidding wars on a lot of properties, which is something you don’t traditionally see this early in the year. But with inventory as low as it is, it’s going to be bidding wars for the foreseeable future. And by the time we hit that spring or summer market, I think it’s going to be pretty crazy.
So what does this mean to you?
THINKING OF BUYING?
Well, if you’re thinking about buying a home by now, values are not going down anytime soon. I think you have a much better shot of getting the property you’re looking for today than you’re going to have to wait until the spring or summertime, I think properties today where you might see two or three offers on a property, you might see 10 or 15 offers on that same property if it were to go live in April or May. So definitely jump on it now if you’re thinking about moving to get in there early, and then just watch the value of your home shoot up as these bidding wars occur.
THINKING OF SELLING?
If you’re thinking about selling right now, I just told you there’s no inventory, there are bidding wars on everything, which is exactly where you want to be if you’re thinking about selling your home. And so one of two things is going to be happening. One you’re thinking of selling your home here in San Diego and moving out of state. Well, this is great to take advantage of San Diego being crazy in there being no inventory, and then go buy that home in Nevada in Idaho in Texas where it’s not so crazy. Or if you’re thinking about making that move up and staying in San Diego, most of the time when you make that move up, the inventory at the lower price ranges is a little bit more constrained, it’s more competitive, which you are going to be selling. As you move up into those higher price ranges, the inventory opens up a little bit more, and it’s not as competitive, so you get to sell where buyers are competing for your home then you get to buy where there’s not a lot of competition, which is a perfect storm.
So hopefully this gives you the information you need to make the right decision here in 2020. If you have additional questions you can reach out to us anytime at 619-618-7997.
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