It has been very interesting to observe and experience the changes to the local Point Loma and Ocean Beach real estate market this year.
The slow moving buyers market seemed to have lasted forever to be jolted very late and early this year with a profound rebound. This seems to have been the result of pent up demand, low interest rates and an avalanche of investors in the market. Associated was the concern that the Fed monitory policy could change due to signs of a slightly improving economy.
Earlier this year it seemed that any property on the market that was “reasonably” priced was flooded with multiple offers and, in many cases we saw modest bidding wars. The frenzy even took some buyers to doing very foolish things like not requiring home inspections just to win the bidding.
We clearly saw the rampant acceleration in asking prices for new homes on the market due to what was happening as well as the historical low inventory. For many months we saw more homes in escrow than on the market which is something I have never seen.
Now it seems that we are seeing a clear “cooling” in the residential home market with quite a few homes falling out of escrow and, with increasing frequency, some pricing reductions.
It is now still largely a “Sellers market” but we are seeing homes on the market for longer periods of time and plenty of uncertainty by buyers with the recent disruptions in our Federal and State Government shutdowns.