The prediction for 2016 is slightly more sales with slightly higher prices. It would be wonderful if there were more homes for sale in the mix. But that is not the case in San Diego Real Estate.
In January 2016, market-wide, There are only 1.9 months of housing supply (Real estate analysts generally say 6 months of inventory is considered a healthy market), down 22.3 percent from a year ago. Pending sales are up, Homes are selling faster a year ago. It is fair to say we will see the Strong Seller’s Market ahead this year.
The Median Sales Price was up 8.2 percent to $532,500 for Detached homes and 9.2 percent to $355,000 for Attached homes. Days on Market decreased 20.4 percent for Detached homes and 19.6 percent for Attached homes. Supply decreased 25.0 percent for Detached homes and 37.5 percent for Attached homes.
HOW BAD IS THE HOUSING INVENTORY ?
The property type that lost the least inventory was the Single-Family Homes segment in San Diego County, where it decreased 19.4 percent. So let’s take a closer look.
SAN DIEGO NORTH PARK HOUSING MARKET
North Park area is one of areas where low housing inventory hit really hard in January. Inventory decreased 47.4%, there is only 1 month of housing supply for Detached homes. Here are active detached home listings in the North Park area today (2/8/2016).
As you can see there are only 15 properties listed for sale. And there is a huge gap. There are no homes for sale between $340,000 and $550,000. If you are a home seller and own a home is worth between $340,000 and $550,000, you have no competition. It is not unusual to receive 10-20 offers in 10 days in these market areas when its marketed correctly.
But If you are a home buyer and pre-qualified for $550,000, looking for a house in North Park, you are in a tough spot. You have to be patient till when new listings come on market or you have to extend the search area. When one comes on market, many home buyers are desperate to get a home, and will make quick and aggressive decisions to win against other bidders. You have to carefully choose tactics to buy a home depending on the market area, including bidding above asking, paying the seller’s closing costs, writing personal letters, or removing contingencies.