When we last checked in with San Diego realtor Jim Klinge, he said
cash-rich investors had been fueling the market to new heights.
Now, he says, although investors remain present, buyers have regained some control.
In his latest vlog post, he explains why: “serious” purchasers — those who, unlike flippers, actually plan to stay in their home and must closely watch their finances — are now reentering the market.
“People will say, ‘Yeah you had 100 people, did you sell it?’ ‘No.’
“But people are out looking. That’s what the point is. People are out checking the market conditions. As long as people are out looking, the market is going to be fine. Shutdown, rates — doesn’t matter. Holidays…
“They’re out seriously looking to buy a house. That’s awesome for the market. … I think it’s going to have to end up being: You can’t just put any old price on it and think someone’s going to pay it.
“Everybody that came in here that I talked to went right down list of reasons they’re cautious right now, and that’s probably going to continue.
“Which is fine, that’s healthy. That’s good for the market.
“But it also means the ones willing to offer a premium product at an attractive price are the ones that are going to be selling.
The ones that are inferior are going to have a lot more of a struggle.”
The latest CoreLogic confirms that price appreciation has slowed.
Here’s the full video (it starts about 20 seconds in):