What Does a Normal San Diego Market Look Like?
Where is the San Diego housing market heading? Considering the average days on market in San Diego County is 39 days, we believe we're seeing the first normal market in over 10 years. In our latest video we look at the major market trends we've in San Diego and how that's led us to the balance and stability we're seeing today.
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This is the first time we've seen a normal market here in San Diego since we first started selling real estate in 2005. From that time until sometime in 2007, there was a mad dash to the market. Everyone wanted to buy - there were multiple offer situations and bidding wars left and right.
Then came 2008 and the crash of the financial markets. It wasn't a slow descent from the height of the market frenzy - the market was pushed off a cliff. Buying and selling real estate became incredibly difficult; buyers and sellers were so far apart during this time we couldn't even get them together for a rational conversation. Financing wasn't there and home prices had plummeted. It was tough.
Around 2013, however, the market snapped back. It was a quick rebound from the market's low point in 2012. People who bought during that time were able to turn around and sell a year later, some seeing returns up to 22%. We were seeing bidding wars and multiple offers like we were in 2005. The market was alive again and as good as ever - people were buying so quickly inventory fell to 1.3 months!
After that roller coaster ride for the real estate industry, we find ourselves here.This year we are seeing the San Diego market finally start to normalize. We currently have an inventory of 3.1 months and the average days on the market is only 39 days. Buyers are currently able to make fair deals, while sellers are still able to get a return on their homes. It's a competitive market where neither side has an advantage. Right now, sellers need to price and market their home aggressively if they want to maximize their results. Overpricing your home will leave it sitting on the market for much longer than it should be.
We're excited to see such a stable market for the first time. It's efficient - homes that should sell are getting sold, and homes that shouldn't be sold aren't selling. Buyers and sellers are getting together and making mutually beneficial deals and inventory is moving!
Want to know what conditions are like in your specific area? Interested in buying or selling? Don't hesitate to give us a call or shoot us an email - we would love to answer your questions and give you a hand where we can!