September 15, 2021

Kyle Whissel, San Diego Realtor breaks down the leading indicators of the San Diego Housing Market for the month of September 2021.

San Diego Housing Market For September 2021

Hey there, it's Kyle, with the Whissel Realty Group and in today's video, we're going to talk a little bit about what the media is reporting and what the media is reporting is that the market is slowing. What the hell does that mean? What is the media even talking about? Well, here's what I want to share with you first and foremost, is the data that the media is reporting to you is often very delayed data.

The reason for that is they report a lot of lagging indicators, which means they're reporting things much later than when they actually happen, the data lags behind what's actually happening. So, when they talk about the market's slowing, there's a lot of different things that that could mean. What it means is I'm going to click that because the market's slowing, that's changed, I've heard the market's hot, now it says it's slowing. What does that mean? Click, that's what the media is trying to do, is they're trying to get you to click. So, let's get beyond the click and let's talk about what's really happening.

Now, when I pull this data, I study this data all the time, my degree's in economics, I love charts and graphs and data, to see what's going on in the market, I was really, really surprised when I pulled this data, because one of the things that I did expect to see is that the number of homes going pending or going into escrow was down a little bit, not a lot, just about a percent. So, I expected that because we felt that a little bit over the last month. Things are just taking a little bit longer to sell. There's a few less buyers out there in the market. My personal belief is that's really due to a little pent up demand from COVID, a lot of people have been taking vacations before school gets started, and so it's kind of expected for things to slow down a little bit. Now, what was really interesting, looking at the data from this past month, is that the number of new homes coming onto the market was down over 18%, which is very, very surprising. I knew that it was going to slow down a little bit on the buy side, but it slowed down a lot on the sell side. So, think about this. We had 18% less homes coming on the market and only about 1% less coming off the market. What that actually did is constricted our inventory even more than it already was.

The media's not talking about that, because that's not sexy. The inventory has been shrinking for a long time now, they keep reporting the same thing over and over. That's not sexy, that doesn't get the click. That's how the media gets paid. So, we've actually saw the contraction of inventory. There's less homes for sale now than there was three months ago. Media's not reporting that, but that's pretty important. It's very important because supply and demand is what moves markets. Supply has continued to decrease. When supply's decreasing, values tend to increase. So, I'm still extremely confident we're going to continue to see values rise in the coming months.

One thing that was a little interesting, but this is more in line with what the media is reporting, is that the time it's taking for a home to sell slowed down a little bit. We're still down about 32% from where we were a year ago, but we're up a little bit from where we were a month ago. So, again, little bit less buyer activity out there, but there's a lot less seller activity out there. So, inventory's still shrinking, shrinking inventory prices are still going to go up.

BUYING?

Well, if you were thinking about buying a home, it's a great opportunity right now. There's a little bit less competition than what you saw a while ago, and it's taking homes a little bit longer to sell. Well, there's logic and there's psychology involved in this whole home buying process. A lot of people who are selling their homes right now are freaking out because their home's not selling as fast as their friend's home sold back in May or June. Where their friend in May or June might have sold their home in a week, somebody selling today, the home might be sitting for two or three or four weeks, they start to freak out. It might create some opportunities for you to come in and get the home you really want at the price that you're comfortable with, so some good opportunity there.

SELLING?

Now, if you're thinking about selling, again, prices are still going up. Prices are continuing to go up, but like I just mentioned on the buy side, it's creating some opportunity. So, it could be a really good opportunity for you to sell, and now make that leap to that bigger home, where before there was a lot of competition for that bigger home, and now there's not as much competition. So, sell your home now. It's going to be a little slower. Have a realistic understanding, it's not selling in two or three days. It's probably going to take two or three weeks now, but now you're going to be able to take advantage of that when you move up. So, still a lot of good opportunities out there. The opportunity that I don't like is selling and renting.

I just had friends in town from Canada this week and we drove by this new apartment building, and were like, "What does something rent for in there?" Pull it up, it's like $3,000 for a one bedroom apartment, $4,000 for a two bedroom apartment. You really want to sell your home in an appreciating market and go rent a two bedroom for four grand? That's nonsense, don't do that. So, that's what I got for you.

That's what's going on here in the San Diego real estate market, September, 2021. If you want to find out if it is the right time for you to buy or to sell, call us at the number down below, we'd love the opportunity to explore that with you and be that guide to help you make that right decision. 619-618-7997

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