The Real Estate 'Shift' is Underway!

In some of my previous posts, I have discussed the futile effort of trying to time the real estate market. The market is constantly evolving so by the time you see a market “shift” it is likely too late to have timed it just right.

This “shift” is now underway in a big way. What do I mean by the “shift”? The market has now shifted from a Seller’s market to a Buyer’s market. The lack of housing inventory in the current market has been well documented. For over a year, the abysmal inventory in Southern California has been well below the average since 2001. San Diego County was averaging 8500 single-family homes on the market at any given time, and now there are only 4500 single-family homes listed. San Diego was also averaging 9400 condos listed at any given time and currently, there are 1300 condos on the market.

Low inventory, coupled with low interest rates have previously been to the advantage of a Seller. However this “shift” to a Buyer’s market has seemed to happen overnight. Inventory is beginning to grow, as are the average days a property will spend on the market. Builders are now seeing their inventory not selling as fast so price decreases are beginning to show. Rates are climbing, and we are currently sitting at a 7-year high with more news from The Fed that more interest rate hikes are likely for 2019.

What does this all mean to you? If you are thinking of selling your home in the next year, get yourself into gear NOW! If you are thinking of buying a home in the next 12 months, do not rush your decision. Rates are likely to increase while you are in the process of buying. Plan ahead for this rise when you are getting pre-approved and working out your payments. It is also important to look at different loan options. Many folks don’t realize there are several loan products that can keep your payment down while still providing an opportunity to build equity.

Remember this: I wear the hat of both a licensed Realtor & Loan Officer. I look forward to your call so that I may help you (or your friends and family) navigate this “shift” in the best possible way. Drive safely!