Over the past few months, the local real estate market has become abuzz thanks to rising San Diego property values, as well as a myriad of other influential factors. Housing prices in San Diego have grown due to a low inventory supply and a market of intense competition between buyers for available properties. Astute homeowners are taking advantage of the current market situation in order to not only sell property which market conditions in the recent past have prevented, but also many times realize a considerable profit.
Lowest Inventory Supply in Years
Homes for sale throughout the San Diego area are in short supply, with the San Diego Association of Realtors releasing data showing the number of active listings as of their March 2013 report to be 4084 – a number which is only slightly higher from the recent low of 3938 seen in January. It is no mystery that the number of homes for sale has increased since that January bottom (with 4055 being reported in February), the holiday season is typically known as a slow point for real estate transactions.
Compared to numbers seen in recent years, the currently inventory supply of around 4000 is just a fraction of the 6621 homes listed one year previously in March of 2012. One year's time has seen a nearly 40% decrease in the number of homes available for sale. Looking back to June of 2011, the number of available San Diego homes for sale was listed at 10,475 – more than a 250% of the present count. Because of such a significant decrease in options, local buyers have become increasingly competitive over available San Diego real estate.
Increased Competition Amongst Buyers
Throughout cities all over the San Diego area, the real estate market has become more and more in favor of the sellers once again. Poway homes for sale have seen a big increase in buyers with the average days on market down to 47 for the month according to the SDAR's latest report. This number is down from 67 just one year prior. Poway real estate is also seeing a bump in value with the latest numbers showing an average sales price of over 22% higher than the same month during the previous year.
Buyers are on the hunt, and with the relatively low number of properties available, competition is increased. Newly listed properties are seeing a flood of potential buyers and many times multiple offers are being received over the listed price. For buyers, cash is becoming king and asking for contingencies or concessions from the seller is a thing of the past.
Where is the Market Going?
With the current trends in place, it appears to a number of analysts that the market is heading for big gains in the near future. With the number of properties available relatively low to what we've seen over the past few years, we should continue to see competition between buyers and an increase in San Diego property values. Homeowners considering selling property should focus on the advantages of the present seller's climate in the area.