Spring and summer may be widely known as the highly active real estate seasons, but warmer weather doesn’t necessarily bring the best opportunities for home buyers or sellers.
With low for-sale inventory plaguing markets nationwide – and more buyers looking to benefit from low-interest rates – this entire year proved positive for home sellers in San Diego and beyond.
New data from Trulia shows that those same home sellers, often looking to upgrade, are simultaneously in the best position to buy due to high supply and lower demand at the top of the market.
Since 2016, the number of starter and trade-up homes on the market fell 20.4 and 12.5 percent, respectively. Meanwhile, premium housing inventory dipped a slight 2.3 percent.
Why Sell Your San Diego Home?
Per Trulia’s market mismatch – a numerical gauge of search interest relative to available listings – the U.S. housing market has become increasingly lopsided in the last year.
Although the share of starter and trade-up home listings dipped to 45.8 percent of all listings, searches for homes within these budgets simultaneously grew to 60.5 percent.
Essentially, the majority of homebuyers in the U.S. want homes that make up less than half of the market.
This imbalance, while less advantageous for new house hunters, gives sellers desirable leverage.
Traditionally, tight home-buying conditions such as these tend to benefit sellers, who may receive offers at or above asking price. With fewer options and weighty competition, the probability of a quick sale is high.
Meanwhile, premium home buyers – typically those who’ve recently sold and are looking to upgrade – are in a good position to buy. In the U.S., there are 14.7 percent more premium listings than there are house hunters searching for them online.
San Diego Housing Market Conditions
Even though the numbers are largely in favor of homeowners trading up, not everyone automatically benefits. It’s important to first consider list prices on San Diego homes for sale and then determine where you, as both a seller and buyer, fall.
Starter homes in San Diego list for a median $365,667 and make up just 18.4 percent of all residential inventory.
Trade-up and premium homes list for a median $548,667 and $1.159 million, respectively. Less than a quarter of all homes for sale are considered trade-up properties while 58.4 percent of homes listed are considered premium.
There’s also your home’s location to consider. Take Marina, a neighborhood that hugs San Diego’s prime waterfront, where the median sales price is $695,000. Home prices there have increased 15 percent year-over-year. In Lake Murray, a suburb north of La Mesa, homes sell for $555,000.
East Village homes are slightly more affordable with a current median price of $518,000, but bear in mind the substantial home price jump (22.2 percent) since last year.
Selling with REX in San Diego
REX Real Estate offers the lowest fees in the industry for sellers. While traditional agents charge 5-6% to sell a home, REX charges as little as 2%, depending on location.
On a $500,000 home, a REX seller saves $20,000 in fees compared to what they would pay using a traditional agent. With cutting edge technology, big data, and AI, REX is revolutionizing residential real estate by cutting out the middle-man and finding buyers directly.
Guest Blog Post Written By: Jennifer Riner, Trulia