San Diego Housing Report for June 17, 2020
The San Diego Housing Market continues to march forward despite negative forces that have plagued the Nation since January 2020.
The following data is provided to you as a courtesy to assist you in analyzing your power position when it comes to making a purchase offer on a property and the interpretation of that position is entirely yours to make, however I will opine what these numbers will mean to you as a home shopping consumer at the conclusion. You may disagree with my opinion, but the following numbers speak volumes on the trend in the San Diego Home Sales Market.
Since May 18, 2020 until today, June 17, 2020 the following sales activity has been logged.
For the Attached home market, i.e., townhomes, condominiums, twin-homes, and rowhomes there are currently 1336 units Active. Pending units awaiting contract close total 1045. And Sold units for the noted period total 547 units. Prices for the homes SOLD during this period range from a low of $38,000 to a high of $3,750,000. The median sales price is $410,000. The average DOM(Days on Market) is 31.
Based on these numbers, there exists 2.44 months inventory if the market entry of new listings remained static.
Here is a trend graph, courtesy of InfoSparks
The trendline if drawn and if the activity continues does indicate a rising inventory of Attached units, but this does not definitively indicate movement from a Sellers’ Market to a Buyers’ Market.
For Detached, single family units; there are currently 2623 units Active. Pending contracts total 3012 and Sold units are 1564. The prices for sold homes range from a low at $85,000 to $10,500,000. Important to note is the median sales price for Detached homes is $660,000. The Average DOM is 50.
The absorption rate based on the above data is 1.68 months!!!
The trend graph, courtesy of InfoSparks
One can see clearly that the absorption rate is increasing ever so slightly but is far below the point of pushing the market to a Buyers’ Market.
So, what does this all mean for you, our clients?
If a seller, you should be aware that if your home is correctly priced for the neighborhood and in pristine, updated condition, proper marketing with professional photos can result in a quick contract and often at or above the listing price with multiple offers to choose from, thus putting you in a power position. This means, you may not need to consider accepting any contingencies proposed in purchase offers.
If a buyer, you must be prepared with a valid Pre-Approval Letter from a recognized lender, and not be unwilling to consider a request from Sellers’ agents for your Highest and Best Offer(F&B) after you have submitted your initial offer. I have experienced first-hand these scenarios when a F&B Offer is requested, and the competing buyers elected to walk away not wanting to involve themselves in a ‘Blind Auction’. We try to prepare our buyers of this possibility with all offers and coach them through the process to make their dreams of owning that special home they have selected a reality.
Purchasing a home is not for the meek, or weak-hearted. You need agents who work for you at every step of the process. We are those agents. Our thirty-plus years of full-time Real Estate Sales & Marketing put us a step ahead of our competitors and we view each client and property as a new challenge to our skills as we do not assume anything and we are no better than our next transaction
Thanks for stopping by!