With the school year ending, it is time to usher in all the distractions of summer: the beach, the community pool, hiking, biking, camping, traveling and all kinds of camps for the kids. As everyone turns their attention to fun in the sun, the housing market evolves and downshifts slightly. The summer housing market has arrived and with it comes an increase in inventory, a slight decrease in demand and a rise in market time.
Demand....a reading of recent pending sales activity, decreases slightly with all the distractions listed above. For many buyers, it still feels as busy as ever but the numbers illustrate a drop in demand regardless. With a decrease in demand, the number of available homes rise as more homes come on the market.
Many sellers mistake summer as the best time of year for housing but with a slight increase in inventory and ever drop in demand, the expected market time to open escrow grows longer albeit not that much longer. In looking at these statements, buyers may conclude that the market will slow down enough to line up in their favor but that will not be the case. Negotiations will continue to favor sellers, yet the unbelievable housing pace will slow.
In the hottest price ranges in San Diego, anything below $1.5M, many homes that would have sold after the initial weekend will take an extra week to sell. Homes will still procure plenty of traffic, multiple offers and sales prices above their asking prices. The market transformation will be characterized by fewer showings, slightly fewer offers generated and not as many sales above their list prices.
In the coming weeks......buyers, sellers and everyone connected to the real estate market will feel a slight slowdown in housing. They will scratch their collective heads and wonder what is going on. No, housing is not suddenly completely in the buyer's favor. Instead, it is shifting to a new cyclical season of the year: SUMMER.
To all Sellers and Buyers; don't let the macro real estate news influence you too much.........call or email me to discuss what is actually taking place in the local San Diego housing market.
Demand....a reading of recent pending sales activity, decreases slightly with all the distractions listed above. For many buyers, it still feels as busy as ever but the numbers illustrate a drop in demand regardless. With a decrease in demand, the number of available homes rise as more homes come on the market.
Many sellers mistake summer as the best time of year for housing but with a slight increase in inventory and ever drop in demand, the expected market time to open escrow grows longer albeit not that much longer. In looking at these statements, buyers may conclude that the market will slow down enough to line up in their favor but that will not be the case. Negotiations will continue to favor sellers, yet the unbelievable housing pace will slow.
In the hottest price ranges in San Diego, anything below $1.5M, many homes that would have sold after the initial weekend will take an extra week to sell. Homes will still procure plenty of traffic, multiple offers and sales prices above their asking prices. The market transformation will be characterized by fewer showings, slightly fewer offers generated and not as many sales above their list prices.
In the coming weeks......buyers, sellers and everyone connected to the real estate market will feel a slight slowdown in housing. They will scratch their collective heads and wonder what is going on. No, housing is not suddenly completely in the buyer's favor. Instead, it is shifting to a new cyclical season of the year: SUMMER.
To all Sellers and Buyers; don't let the macro real estate news influence you too much.........call or email me to discuss what is actually taking place in the local San Diego housing market.
Ben Anderson
License DRE# 01369906
Broker DRE# 01767484
1111 Prospect Street, Suite 100, La Jolla, California 92037
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1111 Prospect Street, Suite 100, La Jolla, California 92037
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