Spring and summer are traditionally two of the hottest periods for the San Diego housing market. Most years see a flood of new buyers entering the market, along with an increase in the number of homes for sale as people try to plan their move to land between the school years.
Spring 2023 is no exception. Despite, or perhaps because of, the economic instability earlier this year, people are increasingly turning to real estate as a strategic long-term investment. The inventory of homes for sale has been ticking up since the start of the year, but strong buyer demand means that multiple offers are back as people compete for a limited number of properties.
Compass CEO Robert Reffkin recently appeared on CNBC to give his opinion on what consumers can expect from the housing market across the country, and his insights mirror what we’re seeing here in San Diego.
In summary:
1. Buyers have accepted 6% mortgage rates as the new normal.
2. Mortgage purchase applications have increased for 8 out of the past 10 weeks.
3. Inventory remains low, though it is currently 60% higher compared to this time last year.
4. Strong buyer demand continues to push home prices.
5. Open house traffic has picked up dramatically, with multiple offer situations becoming more common.
What Home Buyers Can Expect from the Housing Market This Summer
Interest rates are unlikely to fall much below the current levels of 6-7% for a 30-year-fixed-rate mortgage. Higher interest rates will continue to impact affordability so it could pay to make your move sooner rather than later. Interest rates may continue to creep up over the summer. However, buyers should be aware that there are strategies that can help them save on their loan. Check out my recent blog all about the 3-2-1 Buydown option or call for more details.
Inventory is not expected to dramatically increase as we head deeper into summer. Working with an expert who not only has the proven negotiation skills to win in a multiple-offer scenario but also the connections to find untapped inventory, will be critically important. Who you work with matters in every market, but if your goals include purchasing a home this year, choose an agent with superior local knowledge, proven expertise, and access to off-market inventory. I’d love to share how I’ve helped my clients find and purchase their dream homes this year, and how these same strategies will work for you.
What Home Sellers Can Expect from the San Diego Housing Market
Is it time for you to make a move? While home prices dropped a bit at the end of 2022, strong buyer demand this spring has helped to push prices back up. Currently, the median price for a single-family detached home in San Diego is $940,500, near last spring’s high of $975,000. For condos and townhomes, the median price is $635,000 – down slightly from last spring’s median sales prices of $645,000. Wondering what your home may be worth right now? Click here to request an expert opinion of its current market value.
Although high demand has made multiple offer scenarios more common, attracting interest from well-qualified buyers is about more than just listing your home for sale. Your agent’s pricing strategy, marketing campaign, and expertise will ultimately make the difference. I employ professional photography, cutting-edge videography, and the latest print and online marketing strategies to get maximum exposure for your property. When it comes to the negotiating table, I will be your advocate from beginning to end. I ensure your interests are always well-represented and use my years of experience to secure the highest and best terms for you.
Whether buying or selling, I would love to help you succeed in the San Diego housing market this summer. Please give me a call or click here to start a conversation. I look forward to working with you!