Blog

As the real estate market heats up this summer, these trends will drive it.

Summer in San Diego is HOT, HOT, HOT, not just for the weather, but also for real estate. Great summer weather can drive traffic to open houses while families work  to get settled into new homes before the kids start school in the fall. Home sales trend upward during the warmer months, but that’s not the only trend worth noting. Here are a few real estate trends that will shape home buying and selling during summer 2016.

Home buying makes financial sense again.

There were a few years during the recession specifically, where we questioned the long-held belief; Is buying a home really a smarter investment than renting? In today’s current market, we can answer that question with certainty: absolutely! Trulia reports that buying a home is more affordable than renting in 98 of the 100 largest metros in the country! With this statistical evidence, more people may become inspired to purchase property this summer.

Inventory shortage will give sellers a boost.

A continuing trend in San Diego real estate is low inventory. Experts say a 5-6 month supply of available homes is balanced and healthy, but we’re currently on a housing inventory cycle of just under 4.5 months or less in certain areas and price ranges. Consider how this influences the traditional supply and demand formula. With fewer homes on the market, buyers will have more competition and face increasing home prices, while sellers will potentially receive more offers.

New home builds will grow.

With inventory tight and buyer demand projected to grow, we need a solution. And we’ve likely found it in the form of new home builds. Experts indicate that new home construction should also increase this summer.

Whether you plan to buy or sell this summer, it pays to work with a real estate expert who’s informed about current trends. If you want help making the most of what’s trending during summer 2016, contact Jenn Blake Real Estate Group at Pacific Sotheby’s International Realty in San Diego, California at 858-663-6788.