The San Diego Housing Market is Changing
Like it or not, get ready because the San Diego Housing Market is changing and it’s going to come in a big way.
Let’s take a look at the things the media isn’t telling you. First, the inventory supply in the luxury market is going up. Why is that important? Well, traditionally those that own property over $2 Million are business owners. That means their business is slowing down and they are pullout of the luxury market. If you’re a buyer, that’s good because this is where your dollar will go farther.
Appraisals. That nasty thing you must have in order to get a loan. Well, those are coming back lower. In some neighborhoods we’ve seen an increase of over 20% in some cases. Buyers and sellers are entering contracts and those contracts are going sideways because appraisers can’t find comparables to support the price. Watch out– NEVER release your appraisal contingency in a counter offer. That’s BAD, BAD, BAD, BAD, BAD!
Also, Americans are switching to the European Style of living. That’s right, many Americans are looking across the pond when it comes to dealing with housing in the United States. See, many baby boomers are in that downsizing mode. Some 40% of homes across the US are paid for. When Boomers head out looking for that more urban environment, they find it doesn’t fit the fixed income and decide to stay put. They’re passing the home to their heirs and those heirs are, in most cases, just moving in and doing a remodel, staying put with no mortgage.
If you have questions about buying or selling your home, contact us. We’d love to chat with you.