Could prices keep going higher? Yes, due to the lack of inventory. It is a game-changer that we haven’t experienced before – usually as prices rise to new levels, sellers tend to flood the market to get out at the top.
Not this time.
Our local NSDCC inventory has been steady – no big rush by sellers to cash in, mostly because they have nowhere to go that is any better.
NSDCC Total Detached-Home Listings, Jan 1 to Aug 15
2004: 3,671
2005: 3,706
2006: 4,369
2007: 3,823
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2012: 3,151
2013: 3,471
2014: 3,403
2015: 3,474
Could it continue? Yes, it could. We all know about how the San Francisco market has been fetching extraordinary prices. Yet, their inventory is not exploding – instead, it’s going down.
From the WSJ:
A scarcity of listings is sending prices to new highs. In June, the number of new listings in San Francisco was down 23.1% from a year prior, according to the San Francisco Association of Realtors. The average listing spent 26 days on the market, compared with 31 days in June 2014. Median sales prices were up to $1.177 million—a 12.1% jump from a year ago. Real-estate agents say bidding wars are most common on properties priced below $2.5 million, and that buyers often make offers on numerous properties—anywhere from two to 20—before finally winning one.
Read the full story here, with many bidding-war examples:
http://www.wsj.com/articles/in-san-franciscos-bidding-wars-home-prices-go-ballistic-1440683103
I think it has been said several times before.
So where is better?
No place to go.
If they were building enough new homes this would not be an issue.
New homes are coming – they will fill the area between Escondido and Temecula, and jam up the I-15.
But that won’t be a suitable substitution for coastal buyers.
All that’s left is infill, and re-purposing.
You can’t always get what you want, but if you try sometimes you get what you need.
Yea I know.
I think they will start building along the 76 as well soon, sill a lot of open space there.
Anyway better than moving to TX (well IMO).
“West of the 15” will be the new “West of the 5″… in 15 years….. The 56 corridor still has a few shovels of dirt to turn. Unfortunately its gonna take Caltrans 25 years to build the 56/5 interchange.
Jiji, if this week’s stock market is an indication of what’s ahead, “sympathy for the devil” might be more appropriate.
Inv will drive demand, but SF is a unique market with Silicon Valley and international buyers. SD demand will drive prices up, but at some point incomes need to rise to sustain such prices.
Old theory – may not apply this time.
Couldn’t you have said that two years ago? I think so.