As of the beginning of March 2017, we had 4,260 homes actively on the market (in other words not yet under contract) in San Diego County. There were 4,282 pending home sales vs. 3,669 the previous month. This uptick in pending home sales bodes well for future price increases as we hit the spring selling season because inventory should tighten further. In the month of February, 2,044 homes were sold vs. 1,936 in January. Inventory tightened in February from 2.2 months the previous month to ~2.1 months.
Despite the size of the median sold detached home falling for the second straight month (from 1,800 square feet to 1,766 square feet), median home prices were up from $556,500 to $565,000!
After the typical seasonal uptick in inventory (at least on a relative basis as inventory levels on an absolute basis are incredibly low), inventory levels have reasserted there downward trajectory.
What does this mean for a seller?
You should begin talking with your realtor with respect to timing your home sales not only to meet your own personal goals, but also timing as it relates to the spring selling season. This will require a full evaluation of your home and neighborhood now in order to take the steps that are necessary to maximize your resale value and minimize your time on the market this spring.
If you are thinking about selling and then buying shortly thereafter, you want to be talking with your realtor about whether a rent back might work given the mix of buyer’s in your neighborhood.
What does this mean for a buyer?
Inventory is going to get very tight again. It is critical that you work with an agent that is active in the market every day. This agent will understand the various terms in an offer that will maximize your chances of getting your offer accepted without giving away deal points that are critical to protecting your interests as a buyer.
Bob Flynn, March 2017