The real estate market this year has certainly defied all reason. Compared to last year at the same time. Between January 1 and August 31 the median sales price is up 29.06%. And although the news keeps saying there’s not enough inventory, what I think they’re saying is there’s not enough inventory for the increased number of buyers. I say that because the number of sales on single-family homes in 92130 from January 1, 2021 until August 31, 2021 is up 24.3%.

What does that say for the rest of the year? I think the real estate market is going to remain strong through the end of the year. The next four months will remain a strong sellers market. After the first of the year it’s anyone’s guess. The good news is that if you buy what you want and you don’t speculate you’re going to be very happy 10 years from now. It always works that way.

Inventory levels in Carmel Valley continue to be extremely low. Lower than I have ever seen them in the last 33 years I have been specializing in the sales of homes in 92130. According to Housing Wire magazine, “America’s housing market is undersupplied by 3.3 million units, and the shortage is getting worse every year”, Freddie Mac said in a report on Friday. “New housing supply is not keeping up with rising demand,” said Sam Khater, Freddie Mac’s chief economist, who said the shortage is increasing by about 300,000 units a year as homebuilders fail to keep up with demand.

Many factors lead to a lack of inventory, although I believe the changes that were made by Fannie Mae and Freddie Mac after the last recession have Led to this lack of inventory. Although I thought that this year housing prices would flatten out, I seem to be wrong. Because of the lack of inventory and the low interest rates, I believe the demand and appreciation will be strong during 2020 in Carmel Valley and the entire ZIP Code of 92130.