Archive for the ‘market conditions’ Category

Happy New Year 2018 and Real Estate Predictions

Thursday, December 28th, 2017

It is amazing that 2017 has come to an end, and it has certainly been an interesting year in real estate. Low inventory, rising prices and high buyer demand all made for some tough times for buyers and advantageous times for many sellers.

Moving forward into the new year I forsee the following:

Price stabilization: I stand by my comments over the last months that prices should start to calm down. We have already seen that in many areas here in San Diego county. HOWEVER, if the inventory levels remain low and demand high then we could see increases in some high-demand neighborhoods. But I do not think that will last for long.

Inventory increases: With the still high prices and coming market changes – likely interest rate increases, mortgage rate increases and new tax laws, hopefully we will see an increase in properties for sale. Many sellers will likely want to sell prior to tax changes and rising rates, and while demand is high, before such changes could effect net profit margins.

Mortgage rate increases: The last several years have proved positive for sellers with very historic low interest rates. I believe those rates will start to rise as we head into the new year, and that we could even see several increases in 2018. For those who have been pondering purchasing property now is a great time to start looking.

No matter what the new year brings it is still evident that the real estate market remains strong. As I have always believed, you cannot go wrong purchasing San Diego real estate. We have the most beautiful weather, you are never far from the beach, and we have an amazing outdoor, healthy lifestyle here in San Diego county.

Happy New Year to all of you, and I hope that you have a year blessed with good health, lots of laughter, success and much time spent with those you love.

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Why NOW is the Time to Sell Your Home

Tuesday, October 17th, 2017

Many people have been on the fence about selling this past year, due to the fact that inventory is low and they are concerned they may not find replacement housing right away – I personally have been assisting multiple sellers with such concerns. That of course keeps the inventory stagnant and prices high – a perpetual Catch-22. However, there are some conditions that make the market right now the BEST time for sellers to sell…so if you are considering selling, consider the following:

Inventory is still low and prices high. Normally at this time we should see a 6 month inventory supply, but there is only a 4.2 month supply on the market according to the National Association of Realtors (this number has even dropped since this time last year). Although we have seen homes dropping prices quite often in the last few months here in San Diego County, as well as longer market times, it is still a great time to get the best price for the sale of your home as long as you are realistic. Homes that are not priced far above comparable value and offer positive qualities can still sell at strong (higher than average) prices. But this may not be the case as we head toward the end of the year and into the next year, depending on several factors.

Buyer Demand is Higher. Compared to this time last year, buyer demand for homes is higher. Historically low interest rates and sustained job creation fuel the demand, but inventory levels prevent many from finding the right home. How long these buyers will remain in the market is hard to say, but many have decided to rent because they could not find homes, thus taking them off the market for at least a year in most cases.

Natural Disasters Will Help Fuel Buyer Demand. Due to the recent wave of hurricanes in the south many homeowners have been displaced and may soon join the ranks of buyers in other areas, making the demand even higher, OR they could become renters and take rental inventory off many markets – causing purchases to become the only option for many looking for places to live. There is a possibility this could push prices up in some areas.

Proposed Tax Changes Could Effect Demand. There are several proposed tax changes that could effect the buyer demand levels, including changes to real estate deductions. If this happens there is the possibility that sellers may elect to stay rather than move up (to save money), OR buyers may decide to rent to avoid higher tax bills. This remains to be seen but it is something to consider.


If you are considering selling it is important to get an idea of what is going on in your specific market area. Talk to a real estate area professional and crunch the numbers. As always, the real estate market will fluctuate with the ebb and flow of many factors, but if you want to get a high price for your home now is a great time to do your research and prepare to sell.


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