It used to make sense that the higher prices went, the more people would sell.
But now here we are at all-time high prices, and not many are interested. It must be due to the lack of other options – not selling looks better than selling.
New Detached-Home Listings Between Jan 1 – Feb 15
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One place where there has been some nice action is the $700,000 – $900,000 range along the I-15 corridor. There has been a steady stream of new product coming to market, and momentum is building as most sell within the first week (catching many sellers and agents by surprise).
When there are only a smattering of new listings like we’re having along the coast, buyers struggle with whether the pricing is real. A few will sell here and there, but more listings would provide more comfort to buyers, one way or another. If they see them selling, then they’d be more likely to jump in!
2013 and 2014 had the same number of new listings!
IMO it’s the $1 million wall,
Once you hit $1 Million barrier the number of qualified buyer starts to drop off pretty quickly.
There are a lot of 150-200K dual earner households but then numbers start dropping off quickly beyond that.
Right now we can make more income renting a property out then by selling and trying to find a good return on the cash.
I have seen a lot of factors for why people are not selling but people in this environment have locked in a low interest rate, some have locked in a low property tax basis, others bought already with the intention of staying long-term, and there are not a lot of substantially better options out there unless you pay a lot more than what your current place is worth already.
pay a lot more
I’m OK with that! 😆
But you can still get your low rate today (maybe lower than you have now?), and you can bring your low tax basis with you.
Have the baby boomers hit a flat spot that I’ll call Riding It Out? The ambition of moving up has wore off, they don’t need a bigger house and it is nearly impossible to move down and stay in the same ‘hood. Might as well stay put, appreciate what we have, and scale down expenses while playing the Wall Street casino.
Hi Jim,
Do you have sales and listings data for San Marcos? Feels like the market has picked up significantly starting a few weeks ago, but I don’t have the numbers to confirm it. My theory is that would-be Carlsbad buyers have been priced out and they are now looking to San Marcos as the trade off.