We have seen a slow start to the year in San Diego real estate.
The market is extremely low on inventory of homes for sale and buyers are somewhat nervous after the recent Fed interest rate hike.
However, the year is young and there are some good indicators that the year will prove to be a strong year for the market. If the inventory remains low, and if rates are not increased too rapidly, the odds are that an upwards pricing trend will continue. This will likely lead to Buyer’s trying to acquire property before the expected interest rate gains and prior to even further price increases. Seller’s will therefore probably have the upper hand.
However, one of the drivers of price increases in the Southern California area in the past, has been severe winters in the Eastern parts of the country and elsewhere. Since this year it appears that this is not the case, a case could be made that the “move away” buyer
will most likely stay put for a while. This is something that may impact the local market…however, the severe lack of inventory will most likely continue to be the overriding factor…..we shall see.