Sellers market developing

San Diego Seller's Market
The buzz is in the air.   Homes sales are up and phone calls are coming in.  What is going on in the real estate market?

According to the National Association of Realtors, existing-home sales moved up and the signs indicate that a seller’s market is developing.   Home prices are rising steadily compared to last year.  The real estate statistics show that existing-home sales or completed transactions (single-family homes, townhomes, condos, etc.)  are 9.1 percent above January 2012.

Lawrence Yun, NAR chief economist, said tight inventory is a major factor in the market. “Buyer traffic is continuing to pick up, while seller traffic is holding steady. In fact, buyer traffic is 40 percent above a year ago, so there is plenty of demand but insufficient inventory to improve sales more strongly. We’ve transitioned into a seller’s market in much of the country.”

“We expect a seasonal rise of inventory this spring, but it may be insufficient to avoid more frequent incidences of multiple bidding and faster-than-normal price growth,” Yun explained.

NAR President Gary Thomas, “The typical home is selling nearly four weeks faster than it did a year ago,” he said. “In this environment, Realtors® can help buyers strike a balance between moving quickly and protecting their interests, such as making offers contingent upon a satisfactory home inspection and obtaining a loan; of course, a loan pre-qualification may help too.”

Alan N. Nevin, The London Group Realty Advisors recently presented the *San Diego County 2013 Economic Forecast.

Here are some highlights of the presentation relating to the San Diego residential real estate market:

•New home sales will improve slightly:  2,500-3,000 units (1/3rd of normal)
•Few new lots will be manufactured
•The resale housing market will at least match 2012 with more than 40,000 homes and condominiums sold
•Foreclosures and short sales will diminish substantially
•Interest rates will remain low
•Home prices will increase 8-10%, same as in 2012

What does that mean for San Diego?  We’re seeing a rise in sales activity.  Housing inventory is low. The market is such that we are now seeing multiple-bidding on properties and it is not unusual to see 20 bids on a single property.

Are you interested in selling property?  If so,  feel free to contact me.  I can answer your questions and discuss your best options.

*If you would like to read the full San Diego County 2013 Economic Forecast, let me know.  I would be happy to share it with you.