I have never seen a better time to sell your home in San Diego. During the 20 years from 1998 to 2018, the median home value in San Diego rose by a whopping 217%.. Appreciation, that's what we are seeing, with strong demand and an incredibly low inventory, the market will continue to lean heavily in favor of sellers, resulting in home values rising.
It's like the movie Jingle All The Way, I know it was a bad movie but bare with me. Turbo Man was the must have toy for every kid at Christmas. Parents flocked to stores only to be met with long lines and empty shelves. But remember in the movie that tactical parents knew when shipments would arrive and they would be first in line. People in the movie started offering absurd amounts for Turbo Man and it was simply because of supply and demand. Comparing to homes, when there is a low inventory of homes and interest rates are at historic lows, then home prices go up. There is a scarcity of homes which means mutliple offers are the norm. It is no longer uncommon to see 15-20 offers. This has been the story of home sales since June, that is when the expected market time first dropped below 60 days, a hot sellers market.
The expected market time is the speed of the market. The lower the expected market time, the faster the market moves. Today the expected market time for San Diego County is 33 days, it takes a low supply and high demand to get to 33 days. Todays active listings is at it's lowest level for this time of the year since 2012.
In order for the market to remain hot for the remainder of the year the supply must continue to be limited and the demand must remain elevated. I don't see any changes from here to the end of the year. The holidays are coming up and we may see a dip in listings and possibly buyers, but the question of the market crashing is not happening. The pricing of homes is trending higher and higher and there seems to be no end in sight which is why now is a great time to sell. I don't have a crystal ball so I don't know how the market will be like next year. But what I can tell you is that there has not been a better time to sell than TODAY. Ride the wave before it's gone.
-M
