When the housing inventory (for sale homes) drops below the 6-month mark here in San Diego it becomes a "sellers" market. We now have under a 5 month supply.
What that means is, if all homes currently for sale are sold, we will have none left after 4 ½ months. Even if banks decide to unload more foreclosed homes, it will not affect this by much at all.
With new regulations on listing a home on the MLS (Multiple Listing Service) here in San Diego coming into affect at the end of May, we will only have a 2 month supply.
For homes priced under $500,000, there is the situation of multiple offers (my client just won out from 11 other offers) which means property is moving quickly, even with short sales. And talking of which, the new regulations mentioned above now require that short sales are placed into a ‘contingent' status, between for sale and pending, as many of the short sales already have offers submitted to the lenders, with back-up offers being accepted only.
Is the bottom of the market here? What do you think .... If you are waiting for prices to drop further, look no more, they will be dictated by the sellers now, it's a cycle, and we enjoyed the buyers market up until earlier this year, the wheels have turned.
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