What’s going on with the San Diego real estate market in June 2019?
As always, we like to focus on the leading indicators, on what’s happening in the market today. Far too often the media reports the lagging indicators, which is what’s happened months and months ago. They talk about things like the number of homes that closed escrow or what the average price was on those homes that closed escrow. The problem is what closes escrow in June is oftentimes what went into escrow two-plus months ago. So we want to make sure we’re giving you the most relevant data possible so you can make the best decision possible when you’re thinking about buying or selling a home here in San Diego.
The first number I always like to look at is the number of new homes that are coming on the market versus the same time a year ago. We’re seeing that the number of new homes coming on the market’s down a little bit. We’re down about 2.3%.
On the flip side, we look at the number of homes that are going into escrow or going off the market. And that’s up .4%. Pretty flat on both of those, right? We’re not seeing a whole lot of movement. A couple of percent here and there is not a lot of movement. But what we’re seeing is the supply of homes for sale or how many homes are on the market versus the same time a year ago. That’s actually up 9.1%. So if you’re thinking about buying a home, that means you’ve got a little bit more options out there, which is a great thing.
And then days on market, we’ve seen that that’s shot up a little bit as well. That’s up 16.7%. So it’s taking a little bit longer for homes to sell. For you thinking about buying, this is a good thing. You’ve got more options and homes are sitting on the market a little bit longer. The longer homes sit on the market, a lot of times you can find better deals out there.
Now, do we expect this trend to continue? No. Why do we not expect this to continue? Because mortgage rates are at the lowest level they’ve been in about two years right now. The market really stalled out a lot in the fourth quarter and the first quarter of the year because we had rates shoot up around 5%. Well now we’re sitting on rates under 4%, and the market is very dependent on what’s happening with interest rates. So we’re starting to see rates drop down in the threes. We’re starting to see things just especially in the last two weeks really heat up. So we expect that supply to drop a little bit. We expect the days on market to drop a little bit.
So if you’re thinking about buying, the opportunity right now is amazing. You’ve got choices, rates are really low. And if you’re thinking about selling, the real sweet spot right now if you’re thinking about selling is to sell your smaller home and buy that bigger home. Because when you’re selling in that lower price range, the inventory or supply tends to be a little bit tighter, which is a great place to sell. But then when you move up to that bigger home, that’s where that supply really opens up, the days on market opens up, so you’ve got a few more choices up here. So you sell where there’s not a lot of choices for buyers, and then you buy where there is a lot of choices, which is a perfect storm for you. So whether you’re thinking about buying or selling here in San Diego, we would love the opportunity to help make that happen for you. Call Kyle Whissel with Whissel Realty Group, 858-699-3895.Search Homes For Sale in San Diego