4513. 7277. 6248. These numbers represent the following for the San Diego county real estate market, according to the SANDICOR Multiple Listing Service: Homes sold since Nov. 30 2012. Homes currently for sale. Homes currently under contract. Can you guess which is which? More on this later.
Over the past few years our market has been fueled by investors, cash transactions, short sales and foreclosures. Interest rates are still WAY LOW, prices are on the upswing, and first time buyers are actively engaged in the process of finding and buying a home. What’s missing? NEW INVENTORY! Where have all the sellers gone?
Shadow inventory has been hanging over our heads for a couple of years now. At some point we will see some of that hit the market in some form or fashion. But what I’m wondering why, when past cycles showed different patterns, are more homeowners not looking to take advantage of current market conditions to move up, out, or pick up an investment property? After all we are talking about homeowners who seemed to have done things the right way. Take a look at this San Diego market report: Atlantic & Pacific Real Estate Exec Summary [SF]_CA_SAN DIEGO
Check out the gray box at the top right of the report. This is the Market Action Index and it indicates who the market favors, buyers or sellers. You’ll notice it currently favors sellers. Now, suppose you are thinking about moving up into a larger home. Based on the data, you have a very favorable opportunity to win at both sides of the deal. You bring inventory to the market which is desperately needed, especially at the entry to mid level price points, and that creates a frenzy whereby buyers will compete hard for your property and there is a great chance a bidding war ensues. On the buy side, since you might be moving up and into a price point where there is more inventory and less competition, you will have some fantastic choices to consider and know you will get a great deal. If you are downsizing, maybe you are in a position to pay cash or have a larger down payment that makes your offer more attractive if competing with other buyers.
With all the competition out there looking to buy, how do you set yourself up to be a winning bidder? One way is to work with an agent that has access to all the inventory…like Atlantic & Pacific Real Estate agents do. Hey Jason, “What do you mean all the inventory?” Well like all agents we have the multiple listing service or MLS. But because we represent several banks and loan servicers (like our parent company Carrington) our agents also have access to pre-listed homes that are not yet on the active market. Options are always good, right? If you’d like more information on this just contact me and I will put you in touch with a Realtor that can help you.
Now to answer the question. There are 4513 homes currently for sale. 7277 homes currently under contract. 6248 homes sold since Nov. 30, 2012. And most importantly, don’t limit your options to what most agents think is the only option! Dig deeper and see the big picture.