27 Jun Homebuyers Boxing It Out
There is always a trend of rising real estate costs, demographic shifts and low inventory causing grief to homebuyers. It seems to be that as we shift from spring to summer, we will continue to see an extremely competitive housing market-especially here in San Diego. Inventory is low amongst multiple areas around the county and yet interest from buyers is extremely high. This is of course a problem as there are lots of buyers and not a lot of sellers. This could easily change, however, in the coming months. Rates are already near 5%-the highest rates in nearly a decade. The Feds did not anticipate this happening until end of 2018. Of course, when rates increase, as they just recently did in mid-June, lack of affordability increases. As it stands now, less than 18% of the families in San Diego can afford to buy the median-priced home. As this trend continues, at least through the end of 2018, we may see some softening of prices. Like anything else we purchase in life, if there is a scarcity of Buyers-the price goes down.
If you, or someone you know, has been considering selling-now is the time. We are past the all-time peak of housing prices. With rising rates on the horizon-and prices pas their peak-there is no point in waiting any longer. It may very likely cost you many thousands of dollars by waiting.
There have been some factors contributing to the current shortage of housing, in recent months, underbuilding for one. Cost, labor shortages and zoning regulations often prevent new construction from progressing easily. Another is the crossing path of millennials and baby boomers. Millennials are approaching prime home buying age while the boomers are looking to downsize, causing both groups to be looking for the smaller homes, thus creating a shortage. There are also hard feelings between the two groups as Millennials feel that Boomers have larger pools of money to work with from savings to explore other housing options vs. their own savings which is at a lower level.
Listings are continuing to move quickly; they go up and are sold just as fast, not allowing for many interested buyers to even know they existed. Summer inventory is always predicted to move faster than other months and this trend is expected to continue as we approach this summer.
As the local real estate professional, I keep track of these trends on a regular basis so I can best educate my clients and help them to capitalize on the current trends.
If you’ve considered selling, now may be the time for a no obligation conversation about your home. Capitalizing on a hot market is never a bad thing and you’ll want to be in the know.
Contact me today to schedule a ‘pre-marketing consultation’. We can get together for a brief, 15-minute appointment, and I can share with you some valuable recommendations so that you can net the most amount of money from your home sale. Oftentimes, there are simple, inexpensive things you can do to increase the value of your home. In fact, over 90% of the people that take me up on this offer, realize a net gain of an extra $10,00 to $20,000 when they sell their home. Time well-spent.
If you’re considering buying and are fearful of the buyer craze, it is probably in your best interest to also have a conversation. You may want to consider using something like my Dream Home Finder program which will seek you out the perfect house without having to deal with the open market shark frenzy. There are lots of options out there but the first discussion is key. Call or text me if you’d like to set up a time to chat. My cell number is # 858-336-1114.