The July Housing Market Report from Sandicor is very interesting. Across San Diego, the number of home closings went down 6.5% for Detached homes and 12.5% for Attached homes. The number of homes in escrow went down 1.6% for Detached homes and 2.1% for Attached homes. Inventory increased 6.4% for Detached homes and 24.8% for Attached homes. However, the Median Sales Price was up 6.8% to $657,000 for Detached homes and 6.7% to $432,000 for Attached homes.
Is it a bubble? While some of this is seasonal, the market is changing. In particular the high end over $4M. However I'd say that the growing economy, and solid lending practices, market balance is more likely than a bubble.
Why do I feel this way? First, the homes that aren't selling seem to be overpriced and not properly prepared for the market - they aren’t showing well. These are sellers that have decided to get while the getting is good, but don't want to do the work to compete in the market. >Consumer spending on home goods and renovations are up, and more people are entering the workforce. Employed people spending money is good for the housing market. Meanwhile, GDP growth was 4.1% in the second quarter, the strongest showing since 2014.
Smart sellers are hiring the real estate professionals who will help prepare their homes properly for the market, properly price and market their homes. These sellers are having better success with the market – more closings & quicker sales. The takeaway is that not all listings are created equally. The smart realtors and their clients are still successfully selling their homes, which is why home prices continue to go up.
Download the full report HERE
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