What a Change in the San Diego Market Means for You
Today I want to have an honest conversation with you about our current market. According to our most recent figures, it is changing.
Today I want to have an honest and direct conversation with you about what is happening in the marketplace. Most agents are unwilling, or unable, to have this conversation because they lack the scope of being able to have as much data as we do.
The market cycle is changing. Five months ago there were about 4,200 homes on the market. Today there are 7,040. That is a huge jump.
At the same time, rates have been climbing. Depending on the loan product you are getting, your rate now could be as much as an entire point higher than it could have been five or six months ago.
We are in a vastly different environment right now where buyers have a lot more choices. This is the phase that always happens at the beginning of any market cycle shift.
Buyers and sellers are not on the same page. Since buyers are seeing all the different available places, they understand that they have a lot more options and can be pickier. In the neighborhood where I live, for example, there were zero to two properties available at any given time five months ago. Now, there are 24. That is a complete change in inventory. However, sellers are still operating the mentality that if their neighbor sold their house for $915,000, their home must be worth $1,000,000.
This will take some time to change. When the market shifted in 2006 and 2007, what happened first that it was very difficult to do business. Since they were not on the same page, there was a gap in communication where buyers believed we were in one market while sellers thought we were in another. This feeds into inventory growth that we are already seeing currently.
Eventually, the market gets back on the same page like what happened in 2011. Granted, the last cycle was deep and long, which this one should not be.
The good news is that it is still a healthy market to sell in because there are a lot of buyers willing to pay. As a seller today, though, you cannot decide to sell for more than what someone else got just you think it is worth more. However, you can still get the premium because prices are still creeping up even with inventory growth. If you price correctly, you can strike and get yourself to where you want to be.
The one thing you never want to do as a seller is allow yourself to be on the market for more than 30 days. This is because once you become the old listing that clearly did not sell. Every day that you spend on the market, is a day that you proved you do not hold the value that you are asking.
Your power as a seller is upfront which is why we developed our five-day blitz. As a buyer, think about how you are negotiating a home that has been on the market for 100 days versus one that has been on the market for a week. You are more aggressive with the one that has been sitting.
Do not be the home that sits. Be aware that we have inventory growth and interest rate changes. Our political climate currently creates uncertainty. For this reason, you need to know that the previous market is not today's market as well.
If you want to go deeper into this conversation and how it affects your neighborhood and home type, please feel free to contact me by phone or email. I would love to speak with you about it.