We’ve just closed out August of 2020, and our market is on fire. We were expecting this due to the pent-up demand caused by the COVID-19 pandemic, but we were also expecting things to slow down by now, which they haven’t.
Let’s look at the latest year-over-year statistics from San Diego County that buyers and sellers should pay attention to if they want to forecast where the market is heading:
- The number of new listings has dropped 3% from 4,505 to 4,373
- The number of pending homes has risen 23% from 3,198 to 3,940
- Supply has dropped 45% from 7,233 to 4,004 homes
- The months of supply has dropped 45% from 2.7 to 1.5 months
As you can see, supply is way down while demand is up, and that’s what’s driving our fast-paced market. The reason behind this imbalance is interest rates. Last year at this time, they were between 3.6% and 3.8%. Now, they’re hovering between 2.7% and 3%—an all-time low.
We don’t know how long they’ll stay this low, so if you’re a buyer, I wouldn’t hesitate to buy now. Call your lender, get pre-approved, and see what your buying situation looks like. Your interest rate can either cost or save you thousands of dollars over time.
What can you expect if you put your home on the market now? A lot of showings, for one thing. My team and I recently listed a home that generated 36 showings in one day. Hopefully, this activity leads to multiple offers for you.
A lot of showings means a lot of competition for buyers, so if you find a home you like, write an offer with strong terms, and have your agent call the listing agent to find out exactly what the seller is looking for in an offer.
If you’re thinking of buying or selling or you’d like a market analysis for your neighborhood or ZIP code, don’t hesitate to reach out to me. I’d love to speak with you.