As we round the first week of the year, I reflect on the differing sentiments my clients and professional colleagues have on the 2019 outlook for residential real estate in San Diego. Buyers are feeling more empowered as increased inventory widens their choices, rates are still historically low (although trending up), and sellers are getting adjusted to the always shifting market.
Properties are spending a little more time on the market as some buyers hang back to see how this market shapes up over the next few crucial months. Other buyers are seeing opportunities to save on homes listed for longer periods and on those that are just listed that match what they are looking for. Saavy buyers are making offers now while it’s still somewhat quite and often getting positive responses to aggressive offers. While motivations to buy and sell vary, the market forces will undoubtedly control what the buying public can withstand.
I see some listing brokers taking a two pronged approach. Recently, I have seen more “For Sale” listings buttressed by a “For Rent” listing. Some holders of real estate will hedge their bets by taking advantage of the still strong rental market and offer their property for rent and for sale. As a REALTOR® and landlord, I understand a seller’s risk and the ongoing costs of maintaining an occupied or vacant property and how that effects decision making. Does a seller weather the dip by offering their home for rent or do they sell their home in a market still bursting with pent up buyer demand in an apparently healthy economy?
Nevertheless, property owners and those seeking homes to buy in beautiful places like San Diego have the traditional forces of life at work. The ebb and flow of life is still central in people’s decisions to buy and sell real estate.
I have a very positive outlook for buyers and sellers alike.
Some sellers of real estate would like the 3-5% increase in property value to continue, but we are plateauing ever so slightly. Don’t panic, price it right and draw in the buyers that have been actively paying attention. After all, home prices have been racing away from qualified buyers over the last several years. They are finally able to take a breather.
Buyers, take a shot. Have you been eyeing a property or two for the last few weeks/months? If it’s a good fit, go for it! Begin the conversation with the Seller. The worst that can happen is you get a rejection or counter offer. But try not to wait if you are in a good position to buy. As time passes and we get deep into Spring, those other buyers who need to buy will drive competition and multiple offer situations will be more common.
All in all, the market still feels healthy and alive in my view. I see it inching towards being a buyer’s market, but seller’s still hold the cards.
Want to know more about your home value or buying prospects this year? Contact REALTOR® Erick Salgado