Today is the last day of summer 2012 and what a summer it’s been! Crazy hot and humid weather descended on San Diego like never before, and along with it came a big shift in the local real estate market. Home sellers, it is YOUR TIME! According to SANDICOR, the San Diego Regional Multiple Listing Service, or MLS, there are currently 5904 single family homes for sale. That’s not much.
In real estate we look at the absorption rate, or length of time it would take to sell the existing inventory. It doesn’t take into account any new homes coming on the market in the future, but just asks “If I were to sell every home on the market today, how long would it take me?” It is used to determine if it is a buyer’s market, seller’s market, or balanced market. Absorption rate is calculated in months and can generally be interpreted as follows:
- Less than 3 months: Seller’s Market
- 3-6 months: Balanced Market
- Greater than 6 months: Buyer’s Market
The absorption rate for San Diego today stands at 1.6 months. Home sellers…it’s time! The average sales price currently sits at $439,201 and the average days on market time is 70. Compare that to last year when the average sales price was $404,504 and days on market was 75 days. Overall it’s not a huge leap, however because the inventory is much lower the X factor is that we are seeing multiple offers, over list price, and prices are starting to move up faster. Now, that also means there will be more competition and investors are still a big piece of the buyer pool. To put that into perspective we just had a buyer offer $45,000 over list price…and they did not get the property! Home sellers…it’s time!
Typically as we move into Fall and the 4th quarter the real estate market takes a breather. As agents we plan vacations and family gatherings, and as consumers we ease off the home search, decide against listing the house, and think we will wait “Until the New Year” to do anything. Well that strategy may cost you this time round. If you have a need…not just a desire…but a need to get your home sold, this could be the best opportunity in a long time to get it done. The buyers looking this time of year also have a stronger desire, and with the lack of inventory it could be the perfect storm for you. And it’s been a long, long time since that has been the train of thought. Home sellers…It’s time!