When most people decide to buy or sell a home, they don’t take into account what the market is doing and how it will affect your ability to buy/sell. Take a look at the following market temperatures to figure out when you should list your home or go hunting!
This is an extremely competitive market and is advantageous to the seller. Sometimes, homes will sell as soon as they are listed or even before homes are listed. Typically, during a hot market, multiple offers will be made on each home and more often than not, homes will sell for more than the asking price. It is even more crucial to be prepared and to be ready as a buyer when the market is hot. It can be easy to get caught up in the bid for a home, but if you are prepared (pre-approved, solid in price range, realistic about your needs), it is easier to remain focused on your housing needs and price range.
In a normal market, there is a fairly large number of homes available and an average number of buyers. This market does not necessarily favor the buyer or the seller. A seller may not have as many offers on their home, but he or she may not be desperate to sell either. Again, it is the buyer’s responsibility to be prepared. During a normal market, the chances to negotiate are higher than in a hot market. As a buyer, you can expect to make offers at lower than the asking price and negotiate a price at least somewhat less than what the sellers are asking.
In a cold market, houses may be listed for more than a year and the prices of houses listed may drop considerably. This market is advantageous to the buyer. As a buyer, you have the time to make an offer that works to your best interest. It is not uncommon to low-ball and to find that sellers are accommodating to meet your needs. Keep in mind that even though this market is a great time for buyers, you do not want to lose your dream home by being unrealistic. Your goal is to get your dream home at the best possible price.
October’s San Diego real estate market in review: As of October 2016, the average detached home in San Diego County sold for $555,000, up 6.7% from the previous year.
As of October 2016, the average attached home (including condos, townhomes, and twinhomes) in San Diego County sold for $365,000, up 7.4% from last year.
The average detached home in San Diego spent 41 days on the market.
Condos, twinhomes, and townhomes in San Diego spent an average of 35 days on the market.
As of October 2016, we are in a seller’s market. On average, a seller of a detached home in San Diego County receives 96.9% of the original list price at the close of the sale.
As of October 2016, the owners of attached properties (condos, twinhomes, and townhomes) retained 97.6% of the original list price.
The inventory of homes in San Diego County is still low, which is consistent with what we know that inventory is tight and also that late fall and winter are not the preferred time for sellers to list their homes.
The supply of attached properties continues to decline.
Are you interested in seeing this breakdown for your San Diego community or zipcode? Let us know!
We’ve been watching home prices climb in our area, but it’s official: home prices are up nearly 15% in some area, marking a 5-year high. This returns us to the prices we saw in the summer of 2008.
What does this mean for you?
It’s a great time to sell, but also to buy. This increase shows that buyers have more faith in the strength of the housing market. While the beginning of 2013 was marked by cautious optimism, now that summer has arrived, it’s clear that more and more people are of the opinion that the market has taken more than just a temporary turn.
While inventory remains low, the rise in price will likely entice many sellers to enter the market, giving buyers more choice. And although interest rates have inched up, they still remain low overall.
All in all, this is a great opportunity to make your move!
What is the one word that best describes most buyers getting into escrow right now? Aggressive. No matter where you are looking to buy in San Diego, chances are the supply is low and the demand is high. That means most likely there will be multiple offers on the home. And sometimes that’s 3 offers and sometimes that’s 20+. When a buyer says, “please show me the comparable sales in the area,” it’s almost a joke because with the appreciating market, prices are way above the last sale.
For example, we just got acceptance for a buyer looking to buy a 2 bedroom condo in Rancho Bernardo. When we looked at the comps, the most recent model match was at $265,000. We had offered $285,000 on one last week, but lost out because someone had bid higher. When another one came on a few days later, my client went as aggressive as he felt comfortable going, which was $300,000. That did the trick and we got acceptance. There were 20 offers on that one!
We were representing a buyer on our own listing last week with a list price of $687,000. Nineteen offers came in and the buyer who got it offered way over asking price with the intention of getting a conventional loan. They decided to take out the appraisal and loan contingency! Now that is aggressive and something we would recommend only if the buyer is sure he can get a loan and/or is willing to cover the difference of a low appraisal if needed.
With this challenging market our one word of advice is to hire an experienced realtor that is working hard to look out for your best interests. A top realtor will know how to put the best packaged offer together in representing you so that you will stand out in the crowd and get your offer accepted even with multiple bids.
Good news for San Diego county homeowners! Housing prices are rising! As reported by CBS-8:
“Rising housing prices are reinvigorating the move-up market for San Diego County homeowners, the head of the San Diego Association of Realtors said Friday.
The trade group reported this week that the price of a single-family home increased 14 percent — from $360,000 to $410,000 — between February 2012 and last month. It’s the first time in two years that the median price of a house in the San Diego region crossed the $400,000 level.
“Prices have risen enough that many people who put off selling their home are listing it because they know they’re going to be able to move up into that nicer home, or down into a more affordable one, without leaving money on the table,” SDAR board President Linda Lee said.
Prices of condominiums and townhomes also shot up over the same time period, from $198,500 to $250,000, a 26 percent increase, the SDAR reported.
The association reported the cost for both attached and detached residences combined climbed 18 percent.”
This is a drastically different market from 2012, it almost feels like 2005 again with multiple offers on nice homes and many buyers needing to go over list price. We are also seeing many sellers testing the water by listing their homes at prices well over anything that has sold in the last 6 months which makes it all the more important for sellers and buyers to work with experienced agents as appraisals can and will be an issue if not handled properly. With that said, it’s a more positive real estate outlook and market than we have had in years so if you or someone you know is thinking of buying or selling we would love the opportunity to help!
If you’re thinking of selling your home, now would be a good time to do it. We’ve noticed that the market in San Diego is going through a period of rather low supply and high demand. This is amazing because sellers are able to get higher prices than they normally would for their property in some cases. And the homes on the market aren’t all luxury homes either.
What that means for sellers:
-shorter time on the market
-selling for higher prices
One home in the Carmel Valley area, listed for around 1.5 million for approximately 3,000 square feet, was pending in six days!
Your home could be next! If you’re thinking of buying or selling, give us a call. We can help.
3702 Via de la Valle Del Mar, CA 92014 P: (858) 523-0007
Though it’s been in Del Mar for nearly six years, the popularity of Carl Schroeder’s Market Restaurant + Bar is just heating up. Schroder, who got his start in New York, attending the Culinary Institute of America, has won numerous awards and been featured in a number of culinary magazines. All of the ingredients used in the kitchens of The Market are locally sourced and reflect an attention to excellence that is synonymous with the restaurant name. Even the design of the interiors of the restaurant reflects this grounded approach to gourmet food. The colors are earthy and warm, creating an inviting atmosphere not unlike that of a Tuscan farmhouse.
While the menu is ever-changing, some of our past favorites dishes include the short ribs and the chocolate s’mores dessert!
For menu information and reservations, please visit The Market online.