As 2024 comes to a close, it’s time to reflect on this year’s real estate market trends and how they may shape the landscape for 2025. Whether you’re a homeowner, a prospective buyer, or planning to sell, this recap has valuable insights for everyone.
2024 in Review: San Diego Real Estate Highlights
- Home Value Appreciation:
San Diego County homeowners enjoyed a steady 5% appreciation in property values this year. This figure includes all property types—detached homes, condos, and townhomes—indicating a strong/ healthy year for local real estate. - Sales Volume Up by 24%:
The number of homes sold surged by 24% compared to last year’s historically low figures. This rebound reflects improved buyer confidence and market activity, a promising sign after a challenging 2023. - Inventory Growth:
Inventory levels increased by 23% year-over-year, providing more options for buyers. Despite this growth, inventory remained balanced, avoiding oversaturation even in a market with moderate buyer demand.
Challenges Faced in 2024
While many metrics showed improvement, some areas highlighted ongoing challenges:
- Longer Days on Market: Homes took 34% longer to sell compared to 2023, reflecting more cautious buyer behavior.
- Affordability Issues: High property values coupled with elevated mortgage rates continued to strain affordability in San Diego.
- Mortgage Rates: Rates peaked at 7.5% during the year before settling near 6.8% by December. Despite recent declines, rates remained high enough to impact many buyers’ purchasing power.
Looking Ahead: Buyer and Seller Advice for Early 2025
For Buyers:
Don’t wait until the busy spring and summer months to start your home search. The best deals are often found in the quieter months of December, January, and February. By acting now, you can secure a property before values typically peak in late spring and early summer.
For Sellers:
If you’re planning to sell, timing is everything. Historically, May sees the highest property values due to increased buyer activity, and in 2025 potentially lower interest rates. To capitalize on this, list your property in March or April to align your closing with the peak selling season. Use the early months of the year to prepare your home for the market.
Closing Thoughts
2024 was a year of recovery and growth for the San Diego real estate market. With appreciation, increased sales activity, and inventory growth, the market showed resilience despite challenges like high mortgage rates and affordability pressures.
As we move into 2025, keep an eye on interest rate trends and buyer demand shifts. If you have any questions or want personalized advice, reach out to me or the True Local team. Let’s make your real estate goals a reality in the new year!
Stay tuned for my January 2025 predictions—exciting things are ahead for San Diego real estate!