Are Home Prices Going Down?

Posted on October 24, 2013 | by Denny Oh

Currently, there are 257 active listings in downtown San Diego.  This is up quite a bit from the beginning of 2013, when we had about 140 active listings…about an 84% increase.  So is it a good time to buy now, or are prices going to drop?  In the last month or two, the market has cooled off, but the “good” properties are selling pretty quickly.  I haven’t noticed a drop in prices, but we’re definitely not seeing prices rise right now.  Listings are sitting longer and buyers are more critical of how much they want to spend – probably a result of the government shutdown, the volatility in the stock market and simply because we’re heading into the holiday season.

Even with this slow down, we currently only have about 3.5 months worth of inventory (avg. of 74 sales per month over the last 90 days…which is consistent for the year thus far) and prices have risen about 19.8% over the last 12 months (Sept ’12 vs Sept ’13).

GRAPH

I think we’re going into a lull where buyers are able to take advantage of the increased inventory and slightly lower demand.  Through the first three quarters this year, there have been 615 sales downtown – there were only 411 sales the year before (Q1-Q3) – and I think most people who were waiting on the sideline, have already purchased their homes.  I don’t think prices will rise dramatically in the near future, but I do believe prices will rise significantly over a mid-long term timeframe.  There’s too much future/current development for home prices not to rise.  Once we see more businesses downtown, we’ll see a huge increase in the desire to live and work downtown.  That’s when I think prices will really start to rise.

For more information about the San Diego real estate market, please contact me, Denny Oh, at 858-243-2092 or [email protected]

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *