Buyer Demand Continues to Outpace Home Supply in San Diego
Buyer Demand Continues to Outpace Home Supply in San Diego
July 10th, 2018The #1 Reason to List Your House for Sale NOW!
If you are debating whether or not to list your house for sale this year, here is the #1 reason not to wait!
Buyer Demand Continues to Outpace the Supply of Homes in San Diego
The National Association of Realtors’ (NAR) Chief Economist Lawrence Yun recently commented on the current lack of inventory:
“Inventory coming onto the market during this year’s spring buying season – as evidenced again by last month’s weak reading – was not even close to being enough to satisfy demand.
That is why home prices keep outpacing incomes and listings are going under contract in less than a month – and much faster – in many parts of the country.”
San Diego Months Supply of Inventory
The chart below shows there is currently a 1.9-month supply of homes for sale in San Diego (as of June 2018). Anything less than a six-month supply is considered a “seller’s market.”
Hover over this interactive chart to see the live updates.
What is Months Supply of Inventory?
Months of supply is the measure of how many months it would take for the current inventory of homes on the market to sell, given the current pace of home sales. Months of supply is a good indicator of whether a particular real estate market is favoring buyers or sellers.
The chart below shows the Impact of Monthly Housing Inventory on Home Prices.
Move-up Buyers
However, don’t be alarmed if you are a move-up buyer and looking to buy your next home. There’s currently a Tale of Two Markets.
- A trend that has been emerging for some time now is the contrast between inventory & demand in the Premium & Luxury Markets vs. the Starter & Trade-Up Home Markets and what that’s, in turn, doing to prices!
- Inventory continues to rise in the luxury & premium home markets which is causing prices to cool.
- Demand continues to rise with low inventory in the starter & trade-up home markets, causing prices to rise!
Bottom Line
San Diego has been in a Seller’s Market and is currently at 1.9-months inventory. Buyer demand continues to outpace the supply of homes for sale and home prices are appreciating. Let’s get together to discuss the conditions in our neighborhood so that I can assist you in gaining access to the buyers who are ready, willing, and able to buy right now!
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