As we move forward in 2017, there are a few things you can expect from the San Diego real estate market.
I’m often asked whether we’re in a buyer’s or seller’s market, and in 2017, we’re largely forecasted to stay firmly in a seller’s market. The market will be filled with increasing prices, low inventory, and fierce competition between homebuyers. It’s all driven by low interest rates. The low inventory is also driven by the fact that there are more people on the market looking to buy a home than people looking to sell their home. This low inventory and surplus of buyers will directly impact the value of homes in your area.
As a homebuyer, this makes it all a bit tougher to negotiate a lower purchase price, escrow timelines, or contingencies. At the end of last year, we even saw prices climb despite a mini spike in interest rates, and in the first quarter of 2017, we’ve already seen prices bump up a bit in many areas in San Diego. Buyers are absorbing this price increase with open arms. Sellers are reaping the benefits of this, and buyers are doing their best to capitalize quickly on any new listings with strong offers.
It goes without saying that buyers want the lowest interest rate for mortgages, but these low rates also benefit sellers by giving them an abundance of qualified buyers for their house.
So what does all this information mean for anyone looking to buy or sell a home? It all sounds too good to be true for homeowners. Buyers looking to close this year need to keep an open mind, be flexible, and be prepared to move quickly when they find a home that meets their needs. You don’t want to rush into anything.
For sellers, the key to getting ahead in the San Diego market is all about pricing, which is so important. We also have to focus on marketing your home to get the maximum return. Experience counts in times like these, so if you have any questions about buying or selling a home here in San Diego, give us a call or send us an email. We look forward to hearing from you soon.