A Historic First
May 14th, 2008 categories: Our Market
Did you know that this is the first time in US history that home prices and interest rates are low at the same time? That must be what they mean by a Buyer’s Market. But, it’s only a Buyer’s Market if you’re a buyer…
And people are buying. In the last 15 days in San Diego County over 1800 homes listed in the MLS (Multiple Listing Service) have sold or gone from being an active listing to pending sale. That’s 300 more homes sold in the same amount of time than one month ago. Over 400 homes have sold in Coastal North County, cities of Oceanside, Carlsbad, Encinitas, Solana Beach, Del Mar and La Jolla in the past 30 days after having been on the market an average of 64 days.
In speaking with a local Realtor at the 2008 Home Expo at the Convention Center last weekend, we learned that multiple offers are common place in today’s market and in some cases, prices are actually being bid up. How’s that for a turn around?!? The homes garnering this sort of attention are priced right and they show well. Our inside scoop Realtor shared with us that she is seeing this happen regularly, often times on the first day the home is listed in the MLS.
At the Home Expo, we listened to Pete Reeb of Reeb Development Consulting, and his analysis of New Home prices and his discourse on “When is the Right Time To Buy” a new home. Pete says there are basically three types of markets; Hot Markets, Cold Markets and Transition Markets. Today, buyers can pretty much call the shots due to the Colder Market Climate. According to Pete, there are approximately 1000 new homes in inventory in San Diego county today. Considering the current demand for homes, and the fact that home builders have cut back so dramatically on starting new homes, this inventory will be depleted in approximately six to nine months. When supply and demand are basically equal, this is known as ‘Equilibrium’. Now “Equilibrium’ doesn’t last long and we typically don’t realize it’s behind us until after the market has changed course. So what happens six to nine months from now?
We think we have seen the worst of this market and that once we have reached ‘Equilibrium’, prices will be firm and sellers will have more control in the transactions. Remember, it’s only a Buyer’s Market if you’re a Buyer. I didn’t come up that great line but I appreciate the wisdom in it. I hope you will too and take advantage of this amazing historic time in our local Real Estate market.
