Affordability, home prices peaking and interest rates are subjects of discussion during our dinner tables and the rest of this year’s holidays.
To be clear, home prices in the San Diego market are decelerating, coming back down to earth. It is something that a home buyer should consider when negotiating for a house. When homes remain longer in inventory, then is it more probable that the seller decides to reduce the price.
We have observed a slight but consistent amount of price reductions in November, overall for prices above $700,000 since home affordability combined with increased interest rates has put increased pressure on buyers. However, it is to make it clear that house supply is really tight, hence it is a decelerating so don’t expect any drastic reductions.
Consider that for some San Diego zip codes, the number of days that a house remains on the market is 30 days or less and now you know why there is so much confusion on this topic. Sometimes the seller may think that they house is worth much more that it is, given the historical home price increases in San Diego. My suggestion for the sellers is to visit other similar houses similar to theirs and find out what other home competition look like.
Ask for monthly reports in regards to markets changes so you can verify if the price if the price and conditions of the house, etc are competitive. That is, if you want to sell faster.
Based on all this facts, for the remaining of the year and looking into 2019, Seller’s agents shall work harder in assuring that professional pictures are posted online for their house. If every other home or condo in the area is staged, then those considerations shall be disclosed to the seller to assure they are properly informed and house will not sit for extra 4 months on the market (unless of course, the seller is fully aware and he/she is ok with this decision).
For buyers, these markdowns can lead to more choices for those looking to purchase a home. And sellers, you’re still making bank since prices are at its highest level.
This Winter season can be the buyer’s best friend if choosing homes wisely.