Is the housing market doomed to repeat itself? San Diego Realtor Karlee VanDyke goes over why what we are seeing now is different than what has happened before and what is causing this huge jump in home prices.

How Does Supply and Demand Affect the Market?

One of the most common questions I get from the buyers that I serve is, "Is this market going to crash? "I want to wait it out, see if the prices decrease." So let me just share something with you that's different than what happened in 2004. I went through that, and I would love to share that story at a later time, but for today, I want you to understand the difference between what was happen then versus now.

So right now, one of the number one reasons that we have, you know, bidding wars is supply and demand. It's basic Econ 101. We have a low inventory and a high demand. So interest rates, we know that they went up a little bit. Now, that will help with the purchase price eventually. However, it doesn't solve the inventory issue, and, we have a 14-day supply. In a healthy market, we're sitting at about four months. So what could change to increase the inventory? With inventory being a concern, following, you know, the economic slide of what happens year over year, people are talking about an incoming recession, and that could be an issue. But what that does is kind of calm the buyer pool down, but it doesn't solve the inventory issue. So that still leaves a lot of room for home prices in San Diego to stay very steady.

We have a limited supply, our inventory is the number one issue right now. So if you're in the market to purchase a home and you know it's going to be your forever home, now is not the time to wait. If you want more information, I'd be happy to have a conversation with you. I'm here to serve you and share that information with you so that you can make an informed decision. Thank you so much for listening. I'm Karlee Van Dyke with Whissel Realty, and I look forward to serving you.