San Diego Real Estate Market Update – February 2020 – Housing Inventory: What Is the Impact on You?
San Diego Real Estate Market Update – February 2020 – Housing Inventory: What Is the Impact on You?February 26th, 2020
The real estate market is expected to do very well this year as mortgage rates remain at historic lows.
One challenge to the housing industry is the lack of homes available for sale. The inventory in 2020 is off to a sluggish January start across all price points, as shown in the following graph:
Unfortunately, this drop in available homes for sale comes at a time when more buyers are expected to enter the market. n A lack of available inventory could be keeping more people in the rental market, increasing demand and putting pressure on rents.
The question is: What does this mean to you?
If You’re a Buyer…
Be patient during your home search. It may take time to find a home you love. Once you do, however, be ready to move forward quickly. Get pre-approved for a mortgage, be ready to make a competitive offer from the start, and understand that a shortage in inventory could lead to the resurgence of bidding wars. Calculate just how far you’re willing to go to secure a home, if you truly love it.
If You’re a Seller…
Realize that, in some ways, you’re in the driver’s seat. When there is a shortage of an item at the same time there is a strong demand for that item, the seller of that item is in a good position to negotiate. Whether it is price, moving date, possible repairs, or anything else, you’ll be able to demand more from a potential purchaser at a time like this – especially if you have multiple interested buyers. Don’t be unreasonable, but understand you probably have the upper hand.
The housing market will remain strong throughout 2020. Understand what that means to you, whether you’re buying, selling, or doing both.