Learn More Here According to the OC Register, although a significant readjustment of prices in underway in Southern California, this should not be taken as a sign that a massive collapse in prices, like we saw in 2008, is coming.
This does show that, together with the usual seasonal slowdown, and the slowdown we would expect in an election year, the market is shifting from a strong Seller’s market, to a Normal/Buyers market. This gives buyers more leverage, which they need as Interest rates continue to climb.
The significant growth in prices over the last 3 years has made affordability difficult, with a SoCal median price for a Single Family Residence over $520k. The median price in Chula Vista is even higher at $640k, as it is a much more affluent and safer area than many in SoCal.
As the market returns in the spring, it will be interesting to see whether the traditionally stronger demand at this time of year is tempered by Interest rates, or whether inventory gets consumed quickly.
In either case, a return to the Seller’s market of 2016 & 2017 seems unlikely. If you’re getting ready to buy, 2019 could be just the right time.
Call me to discuss what you should be doing to prepare yourself in advance.