Changing For The Better
Saturday, January 15, 2005
Happy New Year! As you can see I’ve decided to welcome 2005 with some changes to the monthly newsletter. I hope you like the new format as much as I do.
Change can be scary, but also ripe with opportunity. The San Diego housing market has changed dramatically over the last 6 months. You have undoubtedly noticed a tectonic shift in the balance of power in the market. On June 22nd, 2004 we breached the point where Active and Pending listings were equal. Prior to that, there were consistently more Pending sales than properties available for sale! This is what made San Diego an incredible seller’s market where demand far exceeded available supply and prices skyrocketed.
During much of the late summer and on through the election in November, we saw a near doubling of available properties from June. Also, a steady decline of those entering into escrow led to a point at which supply and demand were over a 2-1 ratio. This sudden reversal in basic economic law of supply and demand caught many sellers off guard and found some buyers nervously waiting on the sidelines wondering what to do.
Having recently gotten a puppy over the holidays, I am learning the valuable life skill of patience all over again. Looking forward to 2005, I see a year of patience coming our way in the real estate market. San Diego buyers and sellers now find themselves facing a totally different market than has dominated the last 5 years. No longer does a home placed on the market disappear before a buyer can think about the sizeable investment they are making. The balance of power has shifted more appropriately back to the middle, with a slight edge to the buyer. Buyers now have more time to look at the inventory of homes available and have gained back some of the bargaining power that was lost completely when sellers were being bombarded with multiple offers, many of which were considerably over list price. Now, after an incredible run, San Diego has moved into a normal market. Prices in many areas have corrected appropriately to reflect this, and market times have increased significantly from single days to weeks and months.
A normal market, interestingly enough, is actually a win-win situation for everyone involved. Given a respite from the high speed, high pressure transactions of yore, both sides have more time to think about buying or selling their home, arguably one of the most daunting and exciting events in one’s life. Agents are also better able to service both buyer and seller needs, keeping everyone informed and ensuring that everything is done correctly so the transaction proceeds smoothly and unnecessary legal action can be avoided.
I predict patience will be the key factor for San Diego real estate in 2005. Buyers will have the luxury to take time to discuss individual properties with their agents and weigh the benefits of each competing property against the other. Sellers will have the time to realize they are no longer competing with the individual buyers of their property, as they have in the past, but instead against all other available properties on the market. They will then be able to take the time to work with their agent to adopt the best marketing strategies to sell their home in a reasonable amount of time and at the best available price.
Outside the insanity of a market where a crudely hand written sign on the front lawn could sell your house in a matter of hours, the true value of a quality real estate agent on each side of the transaction comes to light. Yes, if you sell with an agent there are costs involved, but if you are so inclined, you can sell your home on your own without an agent -- I’ll even show you how. However, as a buyer of real estate, there is no better free resource than a professional real estate agent on your side. My services are yours at no charge as a buyer. Going in alone against a selling agent will cost you considerably more.
In the long run, the slow correction we experienced over the last 6 months saved us all from the pain of a dangerous market collapse that could have realistically happened overnight. Owning a home is a rewarding experience, both personally, emotionally and financially. If you should find yourself needing my services, please don’t hesitate to call or visit my web site, http://www.craigmbeck.com/, dedicated to informing you, the real estate consumer as either buyer or seller, with a wealth of available information and a number of helpful links to other places I’ve discovered through years of web surfing. I hope you find them helpful too. Feel free to bookmark my site and visit often for updates and information on the San Diego real estate market and surrounding community.
Until next month, here’s wishing the best to you and yours in 2005.
Change can be scary, but also ripe with opportunity. The San Diego housing market has changed dramatically over the last 6 months. You have undoubtedly noticed a tectonic shift in the balance of power in the market. On June 22nd, 2004 we breached the point where Active and Pending listings were equal. Prior to that, there were consistently more Pending sales than properties available for sale! This is what made San Diego an incredible seller’s market where demand far exceeded available supply and prices skyrocketed.
During much of the late summer and on through the election in November, we saw a near doubling of available properties from June. Also, a steady decline of those entering into escrow led to a point at which supply and demand were over a 2-1 ratio. This sudden reversal in basic economic law of supply and demand caught many sellers off guard and found some buyers nervously waiting on the sidelines wondering what to do.
Having recently gotten a puppy over the holidays, I am learning the valuable life skill of patience all over again. Looking forward to 2005, I see a year of patience coming our way in the real estate market. San Diego buyers and sellers now find themselves facing a totally different market than has dominated the last 5 years. No longer does a home placed on the market disappear before a buyer can think about the sizeable investment they are making. The balance of power has shifted more appropriately back to the middle, with a slight edge to the buyer. Buyers now have more time to look at the inventory of homes available and have gained back some of the bargaining power that was lost completely when sellers were being bombarded with multiple offers, many of which were considerably over list price. Now, after an incredible run, San Diego has moved into a normal market. Prices in many areas have corrected appropriately to reflect this, and market times have increased significantly from single days to weeks and months.
A normal market, interestingly enough, is actually a win-win situation for everyone involved. Given a respite from the high speed, high pressure transactions of yore, both sides have more time to think about buying or selling their home, arguably one of the most daunting and exciting events in one’s life. Agents are also better able to service both buyer and seller needs, keeping everyone informed and ensuring that everything is done correctly so the transaction proceeds smoothly and unnecessary legal action can be avoided.
I predict patience will be the key factor for San Diego real estate in 2005. Buyers will have the luxury to take time to discuss individual properties with their agents and weigh the benefits of each competing property against the other. Sellers will have the time to realize they are no longer competing with the individual buyers of their property, as they have in the past, but instead against all other available properties on the market. They will then be able to take the time to work with their agent to adopt the best marketing strategies to sell their home in a reasonable amount of time and at the best available price.
Outside the insanity of a market where a crudely hand written sign on the front lawn could sell your house in a matter of hours, the true value of a quality real estate agent on each side of the transaction comes to light. Yes, if you sell with an agent there are costs involved, but if you are so inclined, you can sell your home on your own without an agent -- I’ll even show you how. However, as a buyer of real estate, there is no better free resource than a professional real estate agent on your side. My services are yours at no charge as a buyer. Going in alone against a selling agent will cost you considerably more.
In the long run, the slow correction we experienced over the last 6 months saved us all from the pain of a dangerous market collapse that could have realistically happened overnight. Owning a home is a rewarding experience, both personally, emotionally and financially. If you should find yourself needing my services, please don’t hesitate to call or visit my web site, http://www.craigmbeck.com/, dedicated to informing you, the real estate consumer as either buyer or seller, with a wealth of available information and a number of helpful links to other places I’ve discovered through years of web surfing. I hope you find them helpful too. Feel free to bookmark my site and visit often for updates and information on the San Diego real estate market and surrounding community.
Until next month, here’s wishing the best to you and yours in 2005.