Here’s what’s happening in the San Diego real estate market.
We’re over halfway through the year, which means it’s the perfect time to talk about trends we’re seeing in our San Diego market. The biggest thing we’ve noticed is that the market is beginning to cool off slightly, but that doesn’t mean things are declining. However, there are fewer showings and less demand for homes compared to months past.
I’ve been predicting this for a while now, and the data’s finally beginning to catch up. Home values are still appreciating—in fact, they’ve risen by about 20% since last year—but we’ll likely see them start to stabilize. This is because buyers can be a bit pickier when looking at homes, and many are starting to avoid ones that are in need of repair, near power lines, on a busy street, etc.
I still predict more stabilization in our market, meaning we won’t see massive rises or falls in home values. Additionally, affordability is low in San Diego right now—over 40% of homeowners spend a third or more of their income on their monthly mortgage payments. On top of this, interest rates have risen above 3% for the first time in a while. They’ll likely continue to rise, which will cool off the market even more.
If you’ve been thinking about selling your home, now may be the perfect time to do so. Demand is down and prices are stabilizing, so you’ll have a better chance of securing a great offer sooner rather than later. If you’ve thought about buying a home, things are beginning to look up for you. There’s less competition, rates are still low, and more inventory is coming onto the market.
If you have any questions or would like more information, feel free to reach out to me anytime. I look forward to hearing from you soon.
