The US housing market continues to defy expectations, despite prolonged low inventory conditions, sustained economic inflation, and rising interest rates. At the beginning of 2023, most experts predicted that home prices would drop slightly during the latter part of the year. Now, almost every leading economic expert has revised their predictions.
What San Diego Home Sellers and Buyers Can Expect in Q4 of 2023
Most experts are now forecasting modest price appreciation to close out the year. While some like Morgan Stanley and the Mortgage Bankers Association are predicting that home prices will remain steady through December 2023, others like Fannie Mae, Zillow, and the American Enterprise Institute say prices could grow by another 3-6%!
Why the change? With less inventory than expected hitting the market this summer, home buyers were forced to compete for available homes, resulting in bidding wars and properties selling over list. Many of the properties I personally listed and sold this year closed for significantly more than the asking price. While this is due in part to my expert pricing and marketing strategy, it also shows that buyer demand remains strong despite higher interest rates and other challenges. The ShowingTime Showing Index indicates that buyer traffic was stronger this year than in previous “normal” years, referring to the period between 2017 and 2019.
What to Expect in the First Half of 2024
If you’ve been thinking of selling and have held off because you weren’t sure you could find your next home in a low inventory market, there’s encouraging news on the way. According to Realtor.com, there’s been an unseasonable uptick in the number of homes coming on the market. Early data suggests more properties were listed for sale in August than in July which is not typical as most summer sellers list sooner in the season. The fact that many homeowners are defying expectations may mean that consumers are feeling more confident in the market and the economy.
Although San Diego homes will always be in high demand due to our incredible locale and investment in economic and business development in the region, more inventory might encourage more sellers to list their homes late in 2023 and early 2024. With home prices predicted to appreciate annually through 2027, it’s a great time to sell if you’ve been considering making a move. Don’t wait for more competition to pop up in your building or neighborhood. Use today’s unique market conditions to your advantage!
If you’re ready to get started, I would love to share my proven strategy for helping my clients sell for more while quickly locating their dream homes. My network and connections have helped me find many spectacular properties both on and off market. Schedule your personal consultation with me to learn more about my proven record of success!