The San Diego County Market Is Undergoing Massive Changes
Our market is undergoing some massive changes right now, and we’d like to let you in on what they mean today.
What’s going on in our San Diego County real estate market as we round out 2018? Let’s find out by taking a look at the year-over-year changes from November of this year versus November of 2017.
First of all, it’s been a long time since we’ve seen this kind of movement in our market.
There has been a 7.7% spike in inventory since November of last year, with 1,121 homes coming on to our market this November.
The number of pending home sales, though, saw a massive change in the opposite direction, dropping 24.7% year over year. Unsurprisingly, this means that the number of closings has also dropped. As of this November, there were 22.9% fewer closings than there were a year ago.
So, given the fact that fewer homes are selling while an increased number of properties continue to hit our market, inventory has risen by a staggering 48% year over year. The months of supply, or the number of months it would take for our market to become depleted of listings if no new homes were to be listed during that time, also rose, going up 64.3%.
All of these changes indicate that we are entering a new market cycle.
The good news for sellers is that while our months of supply did see a massive spike, the increase is relative to last year’s uncharacteristically low level. A balanced market has anywhere between four and six months of supply, and this 64.3% change simply indicates a jump from 1.4 months of inventory to 2.3 months—which is still incredibly low.
Our current market holds a lot of opportunity for buyers and sellers alike, as inventory is low and there has been some interest rate relief. If interest rates continue to rise, as they are projected to do, buyers could end up paying more for a home in the future even if they buy at a lower price.
The bottom line is to make a move if you’re thinking of doing so. Neither our low interest rates nor our low inventory will stay that way forever, so buyers and sellers should begin preparing right away in order to reap the best results from our market. If you are happy with what you own, though, and will continue to be happy until the next up cycle that is a few years ahead of us, then staying put is also an option. It’s all about determining your goals.
If you have any other questions, would like more information, or are curious about how market conditions in your specific area may impact your buying or selling experience, feel free to give us a call or send us an email. We look forward to hearing from you soon.