The Housing Market in San Diego SUCKS!!
The housing market in San Diego SUCKS for everybody, not just buyers who are quickly being priced out of the market but also sellers who really would like to move. Then add in all of the many service providers involved when a property sells – loan officers, appraisers, title reps, escrow officers, real estate agents and all of the assistants. So there are a lot of people fully vested in helping the buyer buy and the seller sell. So why exactly does the housing market in San Diego suck?
The answer can be boiled down to one issue; lack of inventory.
First, lets’ look at the current inventory numbers (as of April 12, 2017):
Number of homes for sale in all of San Diego County – 5,331
Number of single family homes for sale/ average price – 3,716 / $710,379
Number of condos and town-homes for sale/average price – 1,332 / $455,459
Number of mobile homes for sale/average price – 283 / $181,443
Now to fully understand these numbers we need to first look at what the numbers were before the Great Recession (I am going to pick January 2007):
Number of homes for sale in all of San Diego County – 19,959
Number of single family homes for sale/average price – 11,994 / $696,781
Number of condos and town-homes for sale/average price – 7,102 / $422,894
Number of mobile homes for sale/average price – 863 / $111,622
So . . . now you see the issue.
The numbers above are for the entire county, the population of San Diego County is 3,095,313! Take another look at the number above: 5,331 homes on the market for sale! That is .17% of the population.
This presents a couple of issues:
- The people who want to sell are scared to put their home on the market because “where will we go” is a very real fear. No one wants to be pressured to “buy” a home so they sit and wait for more selection.
- There are so many buyers in the market now. For the last couple of years, I have been telling potential buyers that mortgage rates would be going up and NOW is the time to buy a home. Some listened, some waited. Those that listened bought before home prices increased. Those that didn’t are trying to buy a home but find themselves up against multiple offers which drive the prices up.
The higher the prices go brings us to another issue – affordability. It is getting harder and harder for buyers to afford the monthly payments of a home. That will be an issue for another blog, but one that will largely be taken care of if we can get more inventory on the market.
If you are considering selling your home this is the time to get the highest price. If you are trying to buy a home be patient, as we get into the Spring Selling Season we will see more homes come on the market. But … you will be up against multiple offers, be prepared. Yes, the San Diego Housing Market SUCKS . . . for now.