November San Diego Market Changes

George Lorimer
Tuesday, November 1, 2022
November San Diego Market Changes
November 1, 2022

There's an emerging trend from these higher interest rates. In most cases, May of 2022 was the height of the market. Click here to get the most updated stats.
 

4 Steps to Sell Your San Diego home for TOP DOLLAR in this Shifting Market
 

 

ATTENTION SELLERS: To succeed, sellers must price their homes according to their Fair Market Value. Pricing a home accurately is more important today than any other year since the end of the Great Recession. Negotiations are now leaning in favor of buyers, prices are slowly falling, and with affordability taking a drastic hit, buyers are unwilling to stretch, and they will do their due diligence in approaching any offer to purchase. Sellers also must be patient. The housing market is no longer instantaneous. The closer a home looks to a model, the faster it will sell. Pricing a home at the last comparable sale, which needs a lot of work, will simply not sell in today’s market. As a result, sellers have a choice. They can either invest in their home and update it before placing it on the market, or they can adjust the price to reflect the work that needs to be done. Buyers will also subtract for the hassle of doing it themselves.
 
With the market leaning in the buyer's favor and values slowly falling, careful pricing is crucial.
 
Active Listings
The current active inventory remained almost unchanged in the past four weeks.
 
The active listing inventory increased by 63 homes, up 1%, and now sits at 4,380. It has only risen by 42 homes total in the past month. On average, in the 3-years before COVID (2017 to 2019), the inventory fell by 3% during these past four weeks and remains unchanged. It is not that there has been an increase in the number of sellers that has kept the inventory from falling; instead, it is the giant drop in demand since rates spiked recently. Due to incredibly muted demand, the inventory will remain flat through mid-November. From Thanksgiving through the ringing in the New Year, anticipate the typical holiday seasonal plunge in the inventory. The fewest homes come on the market in December, and the second fewest in November. Match fewer homes entering the fray with several sellers throwing in the towel and pulling their homes off the market to enjoy the holidays, and the inventory will still drop considerably from where it sits today. Today’s inventory remains at a highly muted level. While there are 67% more homes on the market compared to last year, there are far fewer homes than the inventory levels before COVID. The 3-year average inventory before the pandemic is 7,034, or 61% more than today.
 
The new trend that developed this year is a sharp decrease in the number of homes on the market. For September, there were 3,047 new FOR-SALE signs in San Diego County, 1,215 fewer than the 3-year average prior to COVID (2017 to 2019), 29% less. So far, in 2022, there have been 9,740 missing signs, down 23%. These missing signs counter the potential rise in the inventory. 

Excerpt from Report on Housing. For a full copy, email - george@lorimerteam.com

 

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