Core factors about todays Real Estate market
Here is a couple of "tidbits" about today's San Diego residential Real Estate market... lately there has been a lot of Up, Down, Horizontal and Sideways "activity" in regards to core factors that encompass the Real Estate market.
When compared to the first 3-months of 2019, the “quantity” of home sales have largely increased during the months of April thru September. What has contributed to this current increase in the “quantity” of home sales is that the buyer-side wisely studied the earlier months of stagnant sales and took advantage of that by masterfully negotiating lower purchase prices.
Buyers thinking of trying to negotiate a lower price was not the case early-in-the-year (January thru March) because at the time it was well known that homeowners truly believed that their homes were worth more than what the market was indicating - therefore many sellers were not willing to budge on the sales price during the early months of the year.
Because of seller unwillingness to negotiate, sellers found their homes simply sitting on the market with no purchase offers. Maybe one or two offers, on some homes, but they were far below the listed price. With that said, the prudent buyer simply waited until sellers started to get anxious and then the sellers reached a point where they were willing to negotiate prices that were more "in-line" with what the market was indicating.
Another factor as to the increased quantity of home sales during April thru September is that the value of homes have not increased much - if any. If they have increased in some areas, it has not been by much. Overall, home values have decreased when compared to last year’s values, therefore home affordability is currently there for "the taking".
One has to also "factor in" that the economy is doing great, the unemployment numbers are coming in at record lows and the mortgage rates are very low - Historically Low. Home affordability is there for "the taking" and at your finger-tips.
Today’s buyers and sellers are currently going through a period that is known as a "Happy Medium". Both sides seem to be content with home values and purchase offers that make sense to both sides.
The aforementioned are some of the core factors that indeed have had an effect in today’s Real Estate market.
If you are in a position to Sell or Buy, personally I would take the opportunity of what the market is currently telling us and "run with it" ... others would say "Get off the Fence" because it is time to jump into the Selling and Buying party !!
Oscar Castillo : BROKER - REALTOR®