Stats don’t lie, and as we dive into the details, it appears the summer selling season might be winding down. Let’s take a closer look at the numbers and trends to understand why this might be happening.
Current Market Snapshot
In the past 30 days:
- 2126 properties came on the market
- 2010 homes sold and closed escrow
- 1729 homes went pending or under contract
This marks the third consecutive month where we’ve seen more listings come on the market compared to those selling. Interestingly, it’s also the first time in years that pending listings was 300 homes less than new Active homes. While a few hundred homes may not drastically impact the market, it’s a sign that the summer selling season could be slowing down.
Indicators of a Slowing Market
Typically, in a seller’s market, we expect to see more sales than inventory. Statistics show that since April and May, we’ve seen more inventory, but sales have begun to plateau or even slow down. This suggests that we may have reached a peak in the market, and July could mark the beginning of a slower period for the rest of the year.
Factors Contributing to the Slowdown
- Increased Travel: Articles have highlighted a surge in American travel over the summer, including the 4th of July. With more people on vacation, fewer are actively buying or selling properties. While this might not drastically impact the market, it certainly plays a role.
- Historical Trends: Last year, we saw a similar decline in home sales through July, with a slight uptick in August before the usual slowdown toward the end of the third and beginning of the fourth quarters. It will be interesting to see if this pattern repeats itself this year.
Current Market Balance
Despite these fluctuations, the market remains relatively balanced. Here’s a breakdown of how homes are selling:
- 41% of properties are selling below asking price
- 44% are selling above asking price
- 15% are selling at asking price
This indicates that whether a property sells quickly and at a good price depends on its market value. Properties priced at or below market value are selling fast and often spark bidding wars, while overpriced properties tend to sit longer, giving buyers more choices and leverage.
Conclusion
The San Diego real estate market is showing signs of an early summer slowdown. However, it remains balanced with opportunities for both buyers and sellers. If you’re considering a move, investing in property, or just want to discuss the market, feel free to reach out to me or anyone on the True Local team. We’re here to help!