Question:
“Hi Gary, we’re hoping to buy a home soon. We’re seeing a lot of houses for sale in our neighborhood. Looks like the market is picking up. Would you agree?”
Answer:
Actually, seeing a lot of For Sale signs is more indicative of the market slowing down than picking up.
That’s because a hotter market typically has fewer homes for sale and they sell quickly.
In a slower market, more homes are for sale and they sell slower, causing more For Sale signs to accumulate. Hence you see more homes for sale at a given moment.
That being said, activity in your immediate neighborhood (or any neighborhood) is not necessarily indicative of the entire San Diego market. It’s too small a sampling to draw a conclusion.
And after that ALL being said, now I’ll actually answer your question!
The San Diego market overall appears to be transitioning from a “hot” or seller’s market with a severe housing inventory shortage into a more “normal” market approaching a balance of supply and demand.
