Change is in the air here in San Diego, as we see the super hot seller’s market gradually cool. According to Realtor.com chief economist Danielle Hale, “It’s definitely still a seller’s market in most of the country. But it’s not the same seller’s market you saw over the last couple of years. You might have to think about how your home compares to the competition that buyers are going to see when they’re shopping. And you might have to price a bit more competitively or think about other enticements to attract buyers.”
The seller’s market and escalating prices over the last few years have been driven by reduced inventory, but that is slowly changing as we start to see more homes come on the market. As more and more homes come on the market, buyers have more choices and prices tend to soften. So, if you’re thinking about selling, sooner is better than later in the year if you don’t want to be competing with your neighbors.
The good news is that at this point prices are still strong and we should continue to see some moderate gains in many San Diego neighborhoods. “Even if you don’t get an offer above your asking price, you’ll still probably come away with a handsome profit from being a seller in 2019,” says Hale.
Another reason why now is a good time to sell is that mortgage interest rates are at a 12 month low - just 4.375% for a 30-year fixed mortgage. This means that buyers can afford more than they could just 8 weeks ago. According to Ali Wolf, director of economic research at Meyers Research, “Sellers need to take advantage of low interest rates as much as buyers do. Sellers don’t want to get stuck in their homes when rates go up and the math no longer makes sense to move.”
Finally, there is an historical fact shared by Wolf that sellers should not ignore: “Sellers who list their homes earlier in the year tend to get a higher sales price and fewer days on the market.” Need we hear more?
If you’re curious about your home’s value, or have any other real estate questions, please don’t hesitate to give me a call!