When’s The Best Time To Buy?
This is a question I see so often, with answers from “It’s always a good time to buy” to “Whenever you’re ready to buy”, but very little in the way of factual information.
I’ve tracked housing inventory levels in San Diego for years, which indicate how active the market is and whether we’re in a buyer’s market or a seller’s market. This tracking shows that there is a seasonality to inventory, building up from the beginning of the year and peaking around mid-year.
To this I’ve added appreciation which shows there is also a seasonality rather than a straight line increase. So even though properties in San Diego appreciated 6.9% in 2016, and so far have appreciated 7.3% in 2017, the greatest appreciation actually occurs in the spring and early summer then drops off later in the year.
So while the industry projections are for continued appreciation in 2018, what this shows for purchasers, is that this December is really the best time to buy, with a good selection of properties to choose from but with prices stable due to little or no appreciation.
Hope you find this chart interesting!