Just thought I would chime in with some statistics which speak to current Buyer activity (or lack thereof) in the market:
- Open Houses held at our listings over the weekend: 2
- Average visitors per open house: 0
- Approximate avg. agent showings per week per listing (our own, 9 listings), April 2006: 3
- Approximate avg. agent showings per week per listing (our own, 10 listings), May 2006 to date: 2 (-33%)
- Number of buyer calls received over the weekend: 1
- # Homes Sold in San Diego, 1st Quarter 2005: 5631
- # Homes Sold in San Diego, 1st Quarter 2006: 4279 (-24%)
- # Homes Sold in Scripps Ranch, 1st Quarter 2005: 126
- # Homes Sold in Scripps Ranch, 1st Quarter 2006: 95 (-25%)
Where is everyone? The paradox is that we have personally seen several properties in the past month sell with multiple offers, so there are Buyers out there. What the guys with the checkbooks are looking for, however, is perceived value. Still nervous about the future of interest rates and the market in general, buyers are taking their time. The lower priced properties continue to be most active, as first-time homebuyers perceive value in terms of still-favorable interest rates and generous financing packages in an environment in which seller concessions (such as paid closing costs) are not uncommon. Moderately priced homes ($600,000’s) are a popular draw as well, but increased competition (more listings) is taking its toll on market times.
If you are selling, patience is a virtue (together with proper pricing, of course).
Edited to correct “bum” showing stats, 5/18/06.