December 10, 2018

The Rundown:

The market is still in good shape, friends! There are over 10,000 homes on the market in San Diego County and more than 3,000 are pending. We are looking at a 3 month supply of housing inventory which, technically, is still a seller's market. The sense that the market is slowing is exacerbated by the typical seasonal shift and the still very low inventory in the under $750,000 range of homes.

Having said that, we are still seeing longer market times and price reductions. Why? In our opinion, pricing is everything! Home prices in San Diego are are still on the rise, but not as robustly as in recent months and years.

Bottom Line:

Buyers - Our message remains consistent... rising interest rates will affect your buying power. The question you need to ask is the following: "IF home prices soften in the next months/year, will the softening prices offset the effect rising interest rates will have?" Considering that a 1 point increase in interest rates will reduce your buying power by approximately 10%, that seems very unlikely. In fact, prices have continued to rise throughout 2018. There is no reason to think that won't continue in 2019. The rate at which prices rise may not be as robust, but don't bet on a sharp decrease at a level that will make up for the increase in interest rates. PLUS - all indicators point to a continued rise in rents. The time to buy is NOW!

Sellers - Another consistent message especially for sellers under $750,000. Plenty of serious buyers are waiting for the right home to come on the market.

Regardless of price point, the key is going to be properly pricing your home and making sure it is positioned well amongst any competition. Houses that aren't priced well are sitting on the market and not getting requests for showings. We are seeing the market time stretch out - meaning it is taking longer to sell a home. We are also seeing more price reductions which tells us that strategically pricing a home on the market is more important than ever! We can show you how!

Wrapping Up 2018:

Aren't we fortunate to live in such a beautiful place in the world! While 2018 wasn't as dynamic as previous years, our housing market is still strong. Owning your own home or investment property is still a fantastic way to build wealth. If you would like some help in looking forward and crunching numbers, we are here for you!

Question? Please ask! We’re here to be a resource.

Interest Rates
(Source: Bankrate.com as of 12/7/2018)

15-yr Loan - 3.89%
(Down 0.02 from last week)
30-yr Loan - 4.54%
(Down 0.10 from week)

Looking for a referral to a great lender? We can help!

Community Spotlight:

Spotlight: Oceanside 92058

Single Family
Median Sales Price, $495,000 (+ 5.3%)
Days on Market Until Sale, 41 (+ 173.3%)
New Listings, 15 (+ 50.0%)
Pending Sales, 10 (- 66.7%)

Townhouse-Condo
Median Sales Price, $338,000 (-1.3%)
Days on Market Until Sale, 34 (+ 3.0%)
New Listings, 3 (- 72.7%)
Pending Sales, 4 (- 60.0%)