Reasons Why the Market Has Reached Its Peaked

As we enter the heat of summertime, our market seems to also have reached its peak. Today I’ll share why I think this is the case for the San Diego County real estate market and explain what this means for buyers and sellers.

In terms of prices, our median sales price is up 16% year-over-year, but there are more homes hitting the market compared to last month partly due to seasonality. Pending sales are dropping after we peaked in March this year, and I think the numbers will continue to stay flat or drop. With the net effect of active listings down 2% year-over-year, the numbers in late June are now up year-over-year.

What does this all mean? I think the number of inventory will continue to balloon as we progress through the summer. However, mortgage applications and showings are dramatically down due to high prices and increased rates in San Diego County. The stock market has also contributed to this drop because the Dow is down 18% year-over-year since the beginning of the year.

As a result of all of these changes, there will be tons of great opportunities for qualified buyers. Sellers, however, have to find creative solutions to keep the buyers’ payments down if they want to get more offers. The market will be better and more balanced, but it will take the hands of experienced real estate professionals to get the best deals possible.

If you need more help navigating this market, don’t hesitate to call or email me. I’m always happy to help!