There will be more headlines about home sales being down – way down – and people might wonder if it means anything. Not really – it’s because there are fewer homes for sale.
It looks like it will continue too.
Last year in San Diego County there were 2,686 detached-home listings in May, and this month we’ve only had 1,114 with a week to go. In May, 2019 there were 3,559 listings!
Can sellers price it in?
Mortgage rates hit 7% again yesterday (with no points), and it’s doubtful that they will come down much once the debt crisis is solved. It’s going to be easy for potential home buyers to pack it in earlier than usual this year and the summer market is likely to be squishy – at best.
Stay tuned!
San Diego is most likely going to look like this for a long time. People who bought 2021-present might feel the effects from a hard recession but most everyone else who purchased prior to 2H 2020 and refi’d is likely paying less than they would be if they were renting.
Something eventually will rock the boat but it’s not something that any of us know yet.
Realtors ready to start pressing for foreclosures to start up again?
If not I’ll check back in 6 months.
If it’s true that something will eventually rock the boat but it’s not something that any of us know yet, then we can’t know when it will happen either.
Doesn’t fewer sellers also translate into fewer buyers, aka the seller would also be a buyer? So isn’t it just a smaller market in terms of participants? Minus 1 seller = minus 1 buyer.
Doesn’t fewer sellers also translate into fewer buyers, aka the seller would also be a buyer? So isn’t it just a smaller market in terms of participants? Minus 1 seller = minus 1 buyer.
Yes, but not directly because it is so hard to downsize and stay around here. You have to leave town to make it worth it.
So as one seller leaves us, another buyer plugs in – either a first-timer or, most likely, an affluent out-of-towner.
But however you look at it, we absolutely have a smaller market – which means everyone in the industry is probably thinking about selling their own home!
Getting damn tired of answering cold calls from desperate agents looking for me to sell our “spare” houses. Sadly they have no idea of the local markets and values. And surprise, they are too low by half.
A guy back east asked me about his house being worth $1.8. I check it out, and I can see a path.
The neighborhood expert comes out and says he’ll list for $1.4, and if we’re lucky, he’ll bid it up to $1.6. Oh, very impressive to get that much over list!