Archive for June, 2017

Is the Seller’s Market Winding Down?

Wednesday, June 28th, 2017

As those who watch the real estate market know, here in Southern California it has been a bit crazy over the last year or so. Despite some reports to the contrary it has been a seller’s market, especially here in San Diego County. That means that prices have risen and it has basically been a great time to be a seller. Low inventory and high demand give sellers an advantage.

BUT, there are some signs that the market may be changing. Let’s have a look at how:

1. Buyers getting priced out of the market. Many buyers cannot afford to live in areas in which they were able to afford a short time ago – in some markets just a year or less! With the choice of moving to completely different areas some are deciding to rent in their preferred areas instead, hoping that prices will drop down the road.

2. Interest rates rising. The interest rates have risen a few times and then dropped. The Feds are trying to sustain the market by making home sales more desirable, but buyers still have to deal with the higher prices and, in many cases, multiple offer situations that raise them even higher.

3. Buyers getting frustrated and putting searches on hold (many opting to rent instead). Many buyers are tiring of the raise in prices. I just showed a condo to buyers (second home purchase) that is priced over $100,000 higher than the model match that sold in January – this is crazy!! I have had several buyers tell me they are just going to wait it out, as they do not want to pay “ridiculous” prices for homes.

4. Home sales are slowing down. May was the third straight month for declines in home sales. Sales listings dropped 8.4% over the last 12 months, due to higher prices and fewer options for buyers.

5. Summer selling season won’t last long. The “hot” selling season that is summer won’t last forever, and many buyers with families want to get into a new home before schools start up again in late August/early September. Those who cannot find homes will be forced to rent, which could take them out of the market for likely a full year, possibly longer. Also, many out of area buyers – a larger percentage here in San Diego which come from tourists – may not be able to find anything to purchase due to low inventory, which means they will be going back home empty-handed. Many of these buyers typically become second home or investment buyers and tend to focus on condos and lower priced homes.

It is evident that the market is causing issues among buyers, and the solution is to inundate the market with more listings. But until the sellers feel they can find replacement property many are electing to stay in their homes, creating a vicious cycle that had no clear end. Ironically, this is typically the best time to sell, so those who want to take advantage of the great seller’s market will need to take a risk and have a Plan B (such as renting in the interim).

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Carlsbad Housing Inventory Report for June 2017

Wednesday, June 14th, 2017

We are in the middle of the busy home selling season and many people ask me how the market is faring. You will likely not be surprised to know that we are still low on inventory. Here are how the numbers look at this time.

There are currently 313 total active listings in Carlsbad as of today, 184 detached and 103 attached homes (this includes condos, townhomes, rowhomes, twinhomes and condos). There are 29 active mobile or modular homes (included in the detached category). As you can see from the graph above, which showcases the last 3 years of sales, there was more inventory in both categories at the same time last year.

Multiple offer situations continue to be a norm in many areas, especially those properties under one million dollars (and most specifically those under $700,000).  Below is a graph showing total inventory for the last 5 years.

There are currently 170 detached homes and 77 attached properties with pending sales (properties that are currently in escrow). As we continue to head through the top time of year for buying and selling properties, it is clear that supply is not meeting demand. This will continue to drive up prices in many areas. Interest rates just rose slightly today so that will also spur some buyers to get out there and join the search party.

If you have any questions about inventory in a specific part of San Diego please feel free to contact me for a detailed analysis. Otherwise find a competent and professional agent in your desired area before deciding to buy or sell a home.

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Gorgeous New Listing in Carlsbad’s Santa Fe Ridge

Saturday, June 10th, 2017

Upgraded and bright Santa Fe Ridge home located in South Carlsbad with award-winning Encinitas schools. 3 bedrooms, 2.5 bathrooms, 1953 square feet. 

Features include private landscaped courtyard entry, upgraded kitchen and bathrooms, recessed lighting and vaulted ceilings, custom paint throughout, ceiling fans, dual pane windows and sliders, plantation shutters, tile flooring downstairs, new carpet upstairs.

Beautifully landscaped and well maintained spacious, private backyard with inviting patio and grass areas. Furnace and AC installed in 2015, new hot water heater. Located close to everything – shopping, dining, entertainment, schools and highways…and of course, the beach!

For more information and to view more photos please click here.

Open Sunday 6/11 from 1-4 PM.

Call Nicole to schedule a showing at 760-580-7992

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