More inventory, reduced home prices point to a shift in market
SAN DIEGO — After a rapid increase in home values across San Diego County, recent data shows the first signs of a market that is finally cooling off.
“If your finger is on the pulse of the market you look at the inventory, look at the reductions, look at the market days. What’s going on here and is it a blip or a trend,” FOX 5 real estate expert Ken Kaplan said.
Kaplan broke down the latest outlook on real estate across the county and said as the inventory rises, selling power is waning.
“Homes are receiving one or two offers instead of 20 and not going over asking price, but maybe at asking price.”
Kaplan says this slow but steady shift began about 60 to 90 days ago and he’s seeing anywhere from 5 to 20% of the existing inventory being reduced in certain areas.
For sellers, if you’ve been in your home for a long time or even about three years, he says this is as good a time as any to put their home on the market because they have appreciation value.
For buyers, the ball may be back in their court as far as the power to negotiate goes.
“Asking for sellers who’ve been on the market for a little while for closing cost, for help with buying down the rate so you can get that great rate, those things that were off the table previously are now kind of back on the table,” Kaplan said.
To see how things will continue to shift in the housing market, Kaplan says ultimately keep an eye on inflation, interest rates and the global economy at large.
“Do I think we’re in for a big crash? I can’t say that, but do I think we’re in for a correction? Probably so,” he said.
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