San Diego has become one of the most desirable cities to live in, and housing prices are poised to hold steady in the near future, with the potential for continued increases further into 2023. However, potential homeowners looking to invest in the area and sellers seeking the best return on their sale have trends and statistics they should keep in mind. This post will explore the current outlook of the San Diego real estate market and how you can get the best deal, regardless of whether you are looking to buy or sell.
Overview of the San Diego real estate market
The San Diego real estate market has been slowing down since late 2022, with prices dropping slightly as mortgage rates have increased, yet home prices remain much higher than just a year ago. Still, following such dramatic rises in prices as were seen over the last few years, sellers may be disappointed in the returns they are currently seeing, as they became accustomed to a housing market that did not appear to have a ceiling. In addition, with many sellers waiting to see how the market will play out before making any decisions, buyers may worry about whether they will be able to find a home that meets their needs and expectations.
However, although the outlook of the San Diego real estate market is uncertain, there are still plenty of opportunities for both buyers and sellers. For anyone looking to buy or sell in the San Diego real estate market, careful research and understanding of the current trends are essential. Looking at recent sales data can help to determine what is a good deal and what is not. Additionally, working with an experienced real estate agent such as Tiffany Torgan can make it much easier to navigate the market and find the best deals.
Impact of rising interest rates on the San Diego housing market
The current outlook of the San Diego real estate market is being impacted by the rise in interest rates that began in late 2022. While rates are currently holding around 6% for 30-year mortgages and 5% for 15-year mortgages, rates are still significantly higher than a year ago, making it more difficult for potential buyers to afford the monthly payments on the home they desire. Additionally, those who are already homeowners and have locked in a lower interest rate are unlikely to choose to move if it means higher monthly payments or being unable to purchase an equivalent home elsewhere.
While some potential buyers may be worried about their ability to secure a loan with favorable terms, mortgage rates are expected to remain steady and even decrease to some degree in 2023. Regardless, despite the negative effects of higher interest rates, there are still opportunities for buyers to find homes that fit both their personal and financial needs. To do this, buyers will have to be savvier about how they shop for a home, staying ahead of trends and paying attention to such timing factors as seasonality. It is also important for potential buyers to pay attention to market conditions and research the best financing options for their situation.
San Diego housing market statistics
San Diego’s housing market is in a strong position, and home values are still up from this time last year. The median sale price of a home in San Diego is currently $895,660, a significant increase over the same period last year. This indicates that the San Diego real estate market remains a seller’s market, as buyers compete for few available homes. For historical comparison, The median home price in San Diego for 2020 was $711,000, which was up from $654,000 in 2019.
In addition, inventory levels remain low in San Diego, with only 1.3 months of inventory of single-family homes available and only 1.1 months supply for condos. This low inventory is helping to counteract the slight fall in demand created by higher interest rates. This is part of why sale prices for homes are still significantly higher than a year ago despite interest rates nearly double what they were at that time.
Is now a good time to buy a home in San Diego?
The San Diego real estate market is currently experiencing a strong seller's market, with low inventory and high demand. This means that there is a lot of competition for the few homes on the market, which is keeping prices higher than this time last year. At the same time, the current median home price in San Diego is higher than the national average but still lower than other major metropolitan areas in California.
In addition, San Diego is known for its desirable climate, diverse neighborhoods, and robust job market. All of these factors make it an attractive place to live and make it a great option for those looking to buy a home. With the current low inventory and high demand, buyers should expect to compete but may be less likely to find themselves in a bidding war than they were in recent years, and buyers who act quickly and make competitive offers can find themselves in a favorable position.
Overall, the current outlook for the San Diego real estate market in 2023 is promising. Mortgage rates are expected to remain steady or decrease, though remaining higher than the exceedingly-low rates experienced during the height of the pandemic. In addition, job growth, a decrease in inventory, and a strong local economy could all increase opportunities for buyers. With all of these factors taken into consideration, the San Diego real estate market is poised for continued growth in 2023.
The key to the San Diego market is the right agent
Real estate transactions involve complex legal and financial processes, but for clients working with an agent such as Tiffany Torgan, real estate does not have to be a mystery. Having the right agent can make all the difference in the outcome of any deal, and a great agent will be able to help clients find the best loan options, negotiation strategies, and opportunities. By working with Tiffany Torgan, California and all the best it has to offer can be open to you.
