We should be hitting our highest inventory count for the year right about now. The last two years saw the San Diego inventory top out towards the end of summer, as unsuccessful sellers packed it in for the off-season:
Asking prices today are quite a bit higher than last summer too, yet the actual inventory count is lower. It is still shocking that these record prices haven’t brought out more sellers.
But what is needed are more sellers willing to heed the market signals.
How will we know if sellers are motivated enough to sell for what the market will bear?
1. We’ll see more sales.
2. We’ll see more fixers selling – there’s always a market for the creampuffs.
3. We’ll see improving SP:LP ratio and average DOM.
We know the frenzy is over, but it hasn’t stopped sellers from pushing their list prices higher. But sales are sliding downward, which means buyers are more cautious about getting their money’s worth.
The market is fine, and there are plenty of buyers. In most cases we are probably only talking about 4% to 8% difference between buyers and sellers – hopefully with the selling season closing out, we’ll have more realistic expectations help find a way to bridge the gap.