Seller’s market or buyer’s market?

If you have been a home buyer in the last 18 months, you have more than likely been very frustrated. Getting an offer accepted as a buyer has been extrememly competetive and near impossible. It has been the luck of the draw. There has been no real rhyme or reason for getting your offer accepted. Every property under $1 million dollars seemed to have 10 offers on it. A third of the offers were more than likely cash, you would have your conventional with 10-50% down payments, and at the very bottom of the list would be your FHA and VA buyers with minimal down payments and tight guidelines.

Seller’s would receive these offers and and look at them from a business stand point, typically look at all the cash offer first. It was highly advisible because these buyers would rarely put in an appraisal contingency or a loan contingency. This alone made the “all cash” offer seem desirable. Additionally, these buyers could close in 14 days or less and get the seller their funds ASAP. Another attractive aspect of these buyers as well as the conventional buyer was the fact that the property could be in any condition and there would be no FHA or VA inspection from the banks. With FHA and VA loans, there is a certain criteria and condition that a property would have to be in for the bank to fund the loan. The costs of repairs would generally fall into the hands of the seller, therefore reducing the net proceeds to the seller at the end of the transaction.

Personally, I love helping people buy homes. Especially their first home. The feeling is unparelled. It is an awesome feeling and one of the main reasons I love my job. That feeling started go away and I was seeing buyers home buying dreams go down the drain. Many people would give up. I am a great negotiator and had a pretty good chnace at getting my clients offers accepted, however, we were at a point in the market where it was all business. Seller’s were looking at bottom lines and which offers would close the fastest with the least stress. In a market where each home has multiple offers, this is the norm.

In the last couple months, we have seen a shift! With rising interest rates coupled with the winter approaching, the market has cooled for seller’s. We are seeing the inventory starting to pick up and homes are starting to sit on the market a little longer. This is giving the average buyers in the market a chance to buy and actually negotiate. In terms of pricing, we are seeing a flattening of the market in most areas and even price reductions. Buyers now have a chance and a choice of homes to look at. Some price points are still low in terms of  inventory, however, most price points between $300,000-$1,000,000 are loosening up.

If you are a buyer in the San Diego real estate market that has been frustrated, it’s time to get back on your horse. The time is now to start looking. Interest rates are steady and still at record lows. Inventory is picking up and winter is here. We never know what the future hold’s so don’t wait too long. If you are in a position to buy, get motivated and start looking!

If you need a Realtor that knows the market and will put your best interets at heart, give me , Jeff Discher 619-887-2800 a call.