January brought a surge of new buyers and renewed activity in the San Diego housing market. After a sluggish second half of 2023, it’s a welcome change that promises the year ahead will indeed live up to the robust predictions from real estate industry experts and economists.
Spring is traditionally one of the best and most popular times to buy and sell a home anywhere in the country, but especially here in San Diego. If you held off on making a change last year, 2024 is the year to reconsider your plans. From selling your current property to purchasing your dream home to investing in a residential or commercial property to diversify your portfolio, I am the local industry expert you can trust to help you achieve your goals on your terms and attain the best possible price.
Whether buying or selling, there are three key trends shaping the 2024 spring market in San Diego. First, interest rates are finally headed on a downward trajectory. Mortgage interest rates dropped during the last two months of 2023 and despite some week-by-week fluctuations, are expected to trend lower over the course of the year. Some experts predict interest rates will hit 6% by year’s end. At writing, the nationwide average for a 30-year fixed rate loan is sitting at 7%.
Inflation has been a tremendous challenge for the US housing market and economy in the post-pandemic years. The Federal Reserve took a strong stance to curb the effects and their plan has finally paid off. According to a recent report from Reuters, “U.S. business activity picked up in January and inflation appeared to abate, with a measure of prices charged by companies for their products falling to the lowest level in more than 3-1/2 years.” This trend of cooling inflation is also bolstered by predictions that the Federal Reserve will cut the standard interest rate several times this year. Consumer confidence in the housing market is already showing signs of growth amongst this encouraging economic news with loan applications picking up in January as well.
Finally, our local market has picked up an incredible amount of momentum early in the year. Though not unusual for prospective home buyers to enter the market with renewed fervor after January 1st, most real estate experts believe these elevated activity levels will continue through the end of the summer and wane as we get closer to the Presidential election in the fall. For a market like San Diego that is always in high demand, it’s great news if you’re looking to sell as all that buyer interest will translate to higher home prices and quicker market times for well-positioned properties. For buyers, you’ll benefit from making your move sooner rather than later as competition for the most desirable homes will only grow as we enter the spring and summer seasons.
Curious about how these three trends shaping the 2024 spring market in San Diego will affect your potential plans? Connect with me today to take the next steps toward selling or buying this year!