According to June data just released by analytic firm CoreLogic, home sales in San Diego hit a four-year low with just 3,927 sales totals. Nonetheless, factors which generally push home sales remained solid. Wages have gone up, unemployment has remained low, and jobs have been added to the economy.
So, what do the low sales for the county mean, and what does the future hold? The numbers reflect a growing shortage of housing throughout not just San Diego, but the entire West Coast, and to a large degree, the nation. Eventually, the lack of supply was going to force a drop in viable demand. People desperately need housing, but that does not mean that they can afford the increasingly high costs associated with homeownership or even rentals. This reduces the number of available buyers.
Does that mean that the housing market is in for a slump? Not necessarily, though it does mean that homes are likely to stay on the market for longer before selling. During July, houses in San Diego County took an average of 32 days to sell, whereas that number was 29 for the preceding three months. While this increase is significant, it is not dramatic.
These circumstances might also mean that sellers will need to be open to negotiation. The upshot is that savvy buyers working with skilled agents may be able to persuade sellers to discount prices significantly to close on a sale. In some cases, this could amount to savings of tens of thousands of dollars.
Whether you are buying or selling in this climate, partnering with the right mortgage company can make a huge difference. Maureen Martin can help you spot opportunity in San Diego’s challenging housing market. Give her a call today at (619) 857-7191 to schedule a consultation.