We currently have some of the lowest inventory levels ever seen. Why is this and what does it mean for the Real Estate Market in November?
October had terrible low inventory levels
Let’s first have a look at October’s stats where we came in with some of the lowest inventory levels ever seen. We only saw 1,429 new listings come onto the market, 2,676 homes go pending, and to make matters worse, 3,117 homes were sold. Our monthly supply of inventory is all the way down to just a measly half a month of supply! This is definitely something we want to keep in mind while entering into November. So what’s driving all of this?
First off, we have buyers coming here from all over. Many people from Seattle, Northern California and Los Angeles are coming to San Diego as it’s a more affordable market.
The Holiday Season
The other culprit is likely the start of the holiday season. People typically don’t like to move during this time of year and we’re seeing homeowners sitting in their properties who are unlikely to sell before the end of the year.
Finally, the fed has already stated that they plan on increasing interest rates, which is likely driving buyers to move quick and find their new property before interest rates go up.
What’s the positive market news?
For all the buyers out there, the real difference we’re seeing is the sales price compared to the list price. At the beginning of the year, we saw the sales prices go all the way up to 6% over the listing price. We’re seeing that drop with average sales being around just 2% over listing price right now. This shows us that we don’t have as much buyer activity resulting in fewer bidding wars. This means that you should be able to find properties out there close to the listing price. This also means that we’ll likely be seeing a healthier market where the rates appreciate by around 0.5-1% month over month.
For all my sellers out there, up until thanksgiving you’re likely to see some phenomenal demand for property. This window is short-lived however, and it’s important to take advantage of the opportunity as soon as possible.
To all my buyers out there, there seems to be a lot more demand for beautifully remodeled homes while the real hidden gems that just need a bit of fixing up tend to go overlooked. By taking advantage of the current interest rates, you can use the money saved on a down payment for such a property and put it toward renovations.
We hope you enjoyed this article!
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