If you live in San Diego, it's clear that living here isn't cheap, and that buyers have been experiencing an extreme lack of inventory and competition in the housing market for the past couple of years. And while homes this year are still appreciating just as strongly as they did the previous year, and sellers prices seem to be just as aggressive, there are some very early preliminary signs we can take a look at to see that there will be a shift coming that seller's are not yet ready to see.
As we entered the summer of 2018, 20% of sellers homes in San Diego saw a price cut in June, even though we aren't seeing much of an adjustment in how seller's are pricing their homes. We are also seeing an increase in housing supply. Supply in San Diego has gone up by more than 35% this year, giving buyers more options, and therefore more leverage. Over the next year, Zillow expects the rate of appreciation to slow to 4.7%, compared to the year to year 8% we have been experiencing, with a median home price of $584,100. More research indicates a full adjustment to a buyer's market by the year 2020.
One thing San Diego is still facing however is a constraint on construction, as homebuilders continue to fail to meet the rising demand of a new wave of millennial homeowners. Genworth Mortgage Insurance stated that the sales of first time homebuyers are up, totaling to over 985,000 homes in the first half of the year, the most since 2005. Coupled with many investors quickly snatching much of the inventory to flip as a rental property, San Diego was left with the tightest inventory it had ever seen. But as homebuilders catch up with demand and more homes come on the market, we can expect to see this change.
Contact me today if you would like to learn more about the housing market, and as always, if ever you are asking when the right time to buy is, it should always be when it makes sense for YOU! Are you financially comfortable? Do you have any savings? What is your debt-to-income ratio?
As we entered the summer of 2018, 20% of sellers homes in San Diego saw a price cut in June, even though we aren't seeing much of an adjustment in how seller's are pricing their homes. We are also seeing an increase in housing supply. Supply in San Diego has gone up by more than 35% this year, giving buyers more options, and therefore more leverage. Over the next year, Zillow expects the rate of appreciation to slow to 4.7%, compared to the year to year 8% we have been experiencing, with a median home price of $584,100. More research indicates a full adjustment to a buyer's market by the year 2020.
One thing San Diego is still facing however is a constraint on construction, as homebuilders continue to fail to meet the rising demand of a new wave of millennial homeowners. Genworth Mortgage Insurance stated that the sales of first time homebuyers are up, totaling to over 985,000 homes in the first half of the year, the most since 2005. Coupled with many investors quickly snatching much of the inventory to flip as a rental property, San Diego was left with the tightest inventory it had ever seen. But as homebuilders catch up with demand and more homes come on the market, we can expect to see this change.
Contact me today if you would like to learn more about the housing market, and as always, if ever you are asking when the right time to buy is, it should always be when it makes sense for YOU! Are you financially comfortable? Do you have any savings? What is your debt-to-income ratio?
Assuming you would need to sell your current home to use that equity to purchase a new home, below you will find an explanation of how to sell your current home and prepare to purchase a new one. By preparing for what happens if, not what happens when you may avoid certain consequences or hiccups along the way, and is why I am a firm believer in an educational process.
This is something I am working through with clients right now, who have just come to me to try and list and purchase a home all in the span of two weeks. The best way to go about this is to have your home on the market and even more preferably in escrow when you have found the next home you want to write an offer on.
This weekend my clients found the home they love, but because their home is not even on the market, their offer will hold little weight. Now, we are trying even harder to get their home listed ASAP so they can secure their dream home. An offer with a home not on the market is not great, an offer with a home on the market is better, and a home in escrow is the best scenario when putting in a contingent offer.
It's also very important to focus on getting the ball rolling on your current home, as that has to close before the second home can close. And if you did put in an offer where your home was not in escrow, the seller could accept your offer but if a back up offer came, they could send you a notice to perform. If you are not in escrow by then, they can cancel contract with you and accept the other offer. This is also why the most secure way is to have your home in escrow already, and to also price your home right to have several back up buyers in the event your buyer backs out. Having multiple buyers can allow you to stay in escrow on your future home.
The most common concern of homeowners is, "What if I cannot find my next home in time?", and that is why you can also structure, if need be, various things that can give you more time in addition to the 30 day escrow. First, you could extend escrow to 45 days. Second, you could also ask that you receive a rent back after the close of escrow, stating that you can live in the home for up to 59 days after the close of escrow. This would essentially give you over 3 months to find a home, and there are also the days your home is on the market before it is in escrow. And, even then if you might feel concerned, you can always add that the sale of your home be contingent on finding a suitable replacement property, so that even if you were in escrow with a buyer, if you did not find the home you hoped to find, you could cancel under that contingency.
Let me know if you would ever like to meet in person to discuss this or any other real estate questions. Knowledge is very valuable, and I hope to arm my clients with as much as possible throughout this process to make the best decisions for themselves and their investments. Contact me today!
Trilogy Sanctuary is a vegetarian and vegan restaurant in La Jolla, California, but that's not all. Trilogy Sanctuary is a place to grow and learn ways of conscious living here in San Diego. There are also an indoor and outdoor yoga studio, offering an array of yoga classes and activities that nourish a healthy body, mind, and spirit. Through their name they hope to embrace three main focuses: yoga, vegan food, and spiritual healing.
The owners Joe and Leila had a vision of creating a space of inclusion and community in a large city like San Diego. Whether you want to come in to grab a healthy bite to eat, join in on a free yoga class, enjoy a healing sounds class, stop by for an intuitive painting class, or even spend date night at Open Mic Night, there are never a lack of options. Trilogy wants to bring new and fun ways for us to not only connect to ourselves, but with one another in more meaningful ways. And in celebration of their successes in creating such a community, they are throwing a 4th Birthday Party! It will be Saturday, July 21st, and I'm about to give you all the details:
If you plan to purchase tickets online the name of the event is Birthday Dance Medicine with COLOR.
7pm to 8.15pm (Earth Room - INDOORS) *Only 40 Tickets*
Vinyasa Yoga Class w/ Julia Sparkman
7pm to 8.15pm (Sky Deck - OUTDOORS) *Only 30 Tickets*
Slow Flow Vinyasa Yoga Class w/ Rob Nguyen
Live Music by Gia George
8.30pm to 9.30pm (Earth Room)
Sound Healing Journey w/
Jesus Gonzalez + Matt Wood
9.30pm to 10pm (Sky Deck)
TrilaGypsies Fire and Aerial Show
10pm to 12pm (Earth Room) *DJ Only Tickets Available*
Color Music
8pm - 12pm (Level 3)
Massage & Energy Healing
And going on all throughout the night will be live aerial and fire shows, face and body painting, live art, a healing room with massages, energy healing and card readings, an elixir bar with Kaiva cocktails and Boochcraft, and the vegan cafe will be open until 10pm.
As you can see, there will be no shortage of things to involve yourself in, so try to be there! And if you can't make it on their Birthday, know that they are always sharing new ways of connecting, healing, and transforming.
The owners Joe and Leila had a vision of creating a space of inclusion and community in a large city like San Diego. Whether you want to come in to grab a healthy bite to eat, join in on a free yoga class, enjoy a healing sounds class, stop by for an intuitive painting class, or even spend date night at Open Mic Night, there are never a lack of options. Trilogy wants to bring new and fun ways for us to not only connect to ourselves, but with one another in more meaningful ways. And in celebration of their successes in creating such a community, they are throwing a 4th Birthday Party! It will be Saturday, July 21st, and I'm about to give you all the details:
If you plan to purchase tickets online the name of the event is Birthday Dance Medicine with COLOR.
7pm to 8.15pm (Earth Room - INDOORS) *Only 40 Tickets*
Vinyasa Yoga Class w/ Julia Sparkman
7pm to 8.15pm (Sky Deck - OUTDOORS) *Only 30 Tickets*
Slow Flow Vinyasa Yoga Class w/ Rob Nguyen
Live Music by Gia George
8.30pm to 9.30pm (Earth Room)
Sound Healing Journey w/
Jesus Gonzalez + Matt Wood
9.30pm to 10pm (Sky Deck)
TrilaGypsies Fire and Aerial Show
10pm to 12pm (Earth Room) *DJ Only Tickets Available*
Color Music
8pm - 12pm (Level 3)
Massage & Energy Healing
And going on all throughout the night will be live aerial and fire shows, face and body painting, live art, a healing room with massages, energy healing and card readings, an elixir bar with Kaiva cocktails and Boochcraft, and the vegan cafe will be open until 10pm.
As you can see, there will be no shortage of things to involve yourself in, so try to be there! And if you can't make it on their Birthday, know that they are always sharing new ways of connecting, healing, and transforming.
