I know that season of spring just started this week, but our home-selling season has been underway since the Super Bowl. It usually lasts until the graduation season starts in mid-May, then Memorial Day is the first long weekend in a couple of months. After that, people wil get busy with vacations and the market gets soggy as the unsold inventory starts piling up.
It means we have about eight weeks left of solid home-selling time.
While it was predictable that potential sellers would adopt a wait-and-see approach in early-2023, we can only hope they’ve liked what they’ve seen so far and will be coming to market in the next couple of months. This year’s NSDCC inventory has been 20% lower than last year (which was the previous record low).
Let’s go around the block and identify some of the action:
Davidson’s Starboard tract in LC Oaks – the neighborhood where I said we won’t see another house sell for less than $2,000,000 (last two sales in 2022 were $2,250,000 and $2,150,000). The only listing this year priced at $2,899,000 went pending in 4 days.
La Costa Valley – The first La Costa Villages tract built in the late-1990s with 1,073 single-family homes – shouldn’t there be some empty-nesters leaving? Four listings this year and only one under $2,000,000.
La Costa Ridge – One of the most expensive LCR houses ever was listed last year for $3,599,000 with no takers. They relisted last week for $3,748,800 and went pending in five days.
Encinitas Ranch – Between Jan 1-Mar 21, there were 10 listings last year, and five this year.
Carmel Valley – Between Jan 1-Mar 21, there were 90 listings last year, and 52 this year. The median list price is 3% lower this year.
You get the picture – fewer and fewer sellers. The total sales between La Jolla and Carlsbad are down about 25% YTD compared to the same time last year. But with inventory also down 20%, it means the demand is only slightly less than it was at peak frenzy when rates were half what they are today.
Hopefully there will be a surge of new listings over the next eight weeks, because the second half of the year could slow to a crawl without more homes to sell.
Rich people aren’t giving up 2% interest rate loans. Never.
Late May used to be “empty nest” season. I suspect seasonality will stretch out longer.