April was another strong month for home sales. The busy spring market continues to see many multiple offer situations driving sales prices above asking price. With such strong activity, by the time a property sale closes, the market may have already moved higher than that sold price suggests. Such markets can create stress and frustration for prospective homebuyers, who are frequently having to submit offers on multiple properties before they are able to secure a purchase.
In the spirit of the great Wayne Gretzky, buyers, sellers, and their agents are all trying their best to skate to where the puck, or rather, the housing market, is going, not where it has been. While housing affordability remains an area to watch as prices continue to rise, strong buyer demand and limited housing supply show no signs of easing soon, pointing to a continuation of this market trend through spring and into summer.
With all this housing mania taking place, it is no wonder why Google reported that the search "When is the housing market going to crash" spiked to 2,450% in the past month. Many experts say there's no reason to prepare for a crash as the reason for the out-of-control prices is simply that there are many more buyers than there are properties for sale. According to HomeDex, the inventory for detached homes in San Diego County for April 2020 was 4,703 homes compared to April 2021 which had 1,897 homes. These numbers can be a little misleading as April 2020 was a month of "confusion" for many buyers and sellers as lending locked up and sellers pulled their homes off the market due to Covid.
As of right now, the only way for prices to drop or stabilize by any significant amount would be if mortgage rates shot up substantially and a lot of homes flooded the market. These record low rates have allowed buyers to purchase more expensive homes while keeping their monthly payments within their budget. I continue to take many calls from Sellers and Buyers in this marketplace and always welcome the opportunity to reconnect with you or speak with your referrals.
In the spirit of the great Wayne Gretzky, buyers, sellers, and their agents are all trying their best to skate to where the puck, or rather, the housing market, is going, not where it has been. While housing affordability remains an area to watch as prices continue to rise, strong buyer demand and limited housing supply show no signs of easing soon, pointing to a continuation of this market trend through spring and into summer.
With all this housing mania taking place, it is no wonder why Google reported that the search "When is the housing market going to crash" spiked to 2,450% in the past month. Many experts say there's no reason to prepare for a crash as the reason for the out-of-control prices is simply that there are many more buyers than there are properties for sale. According to HomeDex, the inventory for detached homes in San Diego County for April 2020 was 4,703 homes compared to April 2021 which had 1,897 homes. These numbers can be a little misleading as April 2020 was a month of "confusion" for many buyers and sellers as lending locked up and sellers pulled their homes off the market due to Covid.
As of right now, the only way for prices to drop or stabilize by any significant amount would be if mortgage rates shot up substantially and a lot of homes flooded the market. These record low rates have allowed buyers to purchase more expensive homes while keeping their monthly payments within their budget. I continue to take many calls from Sellers and Buyers in this marketplace and always welcome the opportunity to reconnect with you or speak with your referrals.
Ben Anderson
License DRE# 01369906
Broker DRE# 01767484
1111 Prospect Street, Suite 100, La Jolla, California 92037
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1111 Prospect Street, Suite 100, La Jolla, California 92037
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