Low housing inventory in San Diego
A recent article in the North County Times examined the low housing inventory, revealing that real estate agents have indicated needing to "get creative" when looking for houses for prospective buyers. People looking for homes for sale in San Diego face challenges with record-low inventory.
The source revealed that in North San Diego County, if buyers had continued the pace that was set in September 2007, it would have taken approximately 15.4 months to buy all the houses that were listed. That number has drastically fallen since then, and looking at August's pace, it would have taken only 2.8 months for all the homes listed to be bought.
The Times revealed that buyers have been quickly flowing back into the market late this summer and into the fall season while homeowners and potential sellers have been reluctant to list their homes on the market mainly due to low home prices. While home prices have made considerable progress in recovering since the housing bubble burst, housing prices still remain significantly lower than their original price homeowners paid.
San Diego's low inventory of homes indicates that prices will continue to increase. The source detailed that economists generally view inventories above six months to be indicative of weak demand and falling home prices, while inventory below three months suggests high demand and rising home prices.
"To get buyers in a backup position, many agents contact other agents who are listing short sales, even when the house in question has a sale in progress," author Eric Wolff reported in the North County Times. "For real estate agents, the shift is a sudden reversal of the past three years, when agents labored to persuade a small number of buyers to make a big on their listings."
A recent article in the San Diego Union-Tribune revealed that the current lack of inventory isn't only evident in the real estate market, but it's also affecting the apartment sector. Industry insiders have suggested investing in apartment buildings, which has caused numerous investors to look to buy.
"The problem is, there aren't enough people selling," said Robert Vallera to the Union-Tribune, senior vice president of a commercial real estate company. "There are definitely plenty of buyers. What we're lacking is motivated sellers. It's holding the volume down. And the sales are only going to the most aggressive buyers."
While inventory continues to remain low, it is expected that the low inventory will continue to drive prices up and influence more sellers to list properties in the future.