Thanks to Jack for the recent comment on my “Calling All Buyer’s” post in which he asked for clarification on our current market. Specifically, he expressed confusion about comments he has heard that our market is a normal one, yet San Diego’s inventory of unsold listings is at an all-time high. How is that normal?
In a previous post of mine I talked about the definition of a “Buyer’s Market?”. In short, if at current absorption rates (homes sold per month) it would take six months for all active listings to sell, the market is a normal one; longer would be a Buyer’s Market, shorter would be a Seller’s Market. This Spring/Summer, we have returned to more of a normal market, although coming off of many years of frenzied activity, it doesn’t feel very normal to a lot of us. An article in this morning’s Union Tribune said that San Diego currently has a 7.1 month inventory of homes for sale, which would suggest we are indeed moving toward a market favoring buyers, and I believe few will question that this is a trend. Fall should be interesting. It remains to be seen whether buyers will begin seeing the advantages of a lower interest rate environment which will offset anticipated (by some) future price reductions or will continue to take the wait-and-see approach that is making the listing (and buyer’s) agents crazy right now.
Now, for the exciting contest results. Rank has its privileges, and I hereby award the trip to Starbucks (transportation not included) to Jack. OK, you didn’t answer the questions, but you asked a good one. Shoot me an email (hit the “Contact Us” link) so I know where to send your prize. As for what we learned from my little survey, not a lot it seems. The numerous respondents 🙂 agreed that prices are high and that time is on their side. The investor’s response I found most interesting and indicative of things to come. We have eliminated much of this buying segment, which has historically represented a large component of our San Diego sales, as high prices no longer allow the investment opportunities to pencil out.
OK, Steve. Your turn.