Home sales in San Diego County are down by nearly 20 percent in August compared to the same time last year.
Experts say they are definitely seeing trends of home prices normalizing and flatlining. While there are a lot of factors that go into that but experts say regardless of the drop in home sales, we won't see a crazy drop in home prices.
"Agents tell seller they have to take a back step," Ginni Field said. "Can't get what they could get a year or two ago."
Field, who has worked in real estate for more than 30 years, said there are a couple of factors that go into this. Interest rates, even just a couple points too high could throw some buyers out of the market. People's income levels may be too low for the cost of a mortgage and, of course, overall supply and demand.
"When that shift happens, it takes time. It's a process," she said. "Seller to buyer market takes time to see that kind of shift happens. It's usually directly related to supply and demand."
In spite of the fact that fewer homes were sold in August compared to last year, homes in San Diego County, on average, close escrow within 30 days on the market.
There are, however, more homes to choose from right now, according to the Greater San Diego Association of Realtors.
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What can we expect next?
"We're kinda at a place where we are gonna see some decreases in value," Field said. "Do I see a dramatic drop? No."
She said the dynamic that recreated the Great Recession doesn't exist today, but Field said there is going to a be an adjustment downward based on supply and demand."
Field recommends first-time homebuyers try to save about $60,000 to $100,000 for a downpayment. The more money you put down, the more affordable the mortgage will be over the long run.
