Could We Be Seeing The Beginning Of Price Decline Across The Southland?
Could we be seeing the beginning of pricer decline across the southland?Don’t get too excited–the southland median price did rise 5.8% year over year from July 2017 to July 2018, but prices did dip from June’s median price rise the previous month. It could be an anomaly or a coming trend, obviously one month is not enough to tell. Realtors did see an inventory rise of approximately 14%, but hardly enough to tilt the scales to a buyer’s market, or even a neutral market. We are, though in fact, at a 6 year high in inventory. However, that being said, many buyers today are backing away from rising prices, refusing to pay over market.
Appraisals also are coming in on current escrows with a bit more conservative logic than in previous months. All pointing toward a slow down? With still just a 3 month supply of housing and even a bit shorter on that for entry level buyers, most economists expect 2019 to still bring strong sales, possibly even stronger than 2018, according to Fannie Mae, Freddie Mac, and the Mortgage Bankers Association. But sellers trying to test the market with list prices above comparable sales available in their neighborhood will likely find themselves sitting with no offers. Today’s buyers are not interested in bidding wars or overpriced homes. Only the most motivated sellers priced correctly will be in play. This is actually to a seller’s advantage to be priced aggressively. You are most likely to get multiple offers when buyers feel there is value. Rising interest rates will continue to be a factor as buyer’s purchasing power is slightly diminished. It is not enough to dissuade a buyer however.