The San Diego Median sales price has increased 6% this year already! Yes you heard me correctly… 6%! Most of that coming in the last 4 months and outpacing most of California. How could this be? What is happening?
Well the narrative remains the same as it has been over the past 2 months. We have seen extremely low inventory levels combined with high demand from buyers wanting to take advantage of these historically low interest rates.
So Why San Diego?
This is tough to say exactly however from our boots on the ground “analytics”… we are seeing 2 types of buyers becoming very prominent in our market. One is the amount of folks relocating to San Diego for better weather and even some for affordability (these are the folks coming down from the Bay Area and LA). The second is the amount of VA buyers we have purchasing homes here. With the VA loan limit no longer a factor our military members are able to utilize their VA loans with those extremely low interest rates and purchase just about anything they want. We’d say that those are the 2 largest buyer trends that we are seeing that are impacting our market beyond the typical demand we have at all times. I mean… who wouldn’t want to live in this beautiful city?
So when will the market slow down?
That’s tough to say and we do not have a crystal ball. I will say that we don’t believe some of the doom and gloom predictions out there. The main reason why we don’t believe in them is due to the stats. The 2 stats we love to see in a healthy market is low Negative Equity numbers and low Delinquency numbers. Right now San Diego is only at 5% of homes being in negative equity, the national average is 8.2%. As for the delinquency rate which we all thought would go up due the Covid-19, has actually remained the same at 0.4%, when the national average has increased to 1.1%. This shows us that the San Diego county market is still in a strong position with no signs of a shift coming anytime soon.
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Lets chat about the HomeLight Trade-In program: (Click Here)
2 reasons to buy right now even though the market is super competitive. 1. Interest Rates will never get better than this. 2. Real Estate is the ultimate protection against inflation. Especially when you look at leveraging the asset such as a mortgage rate… at 2.85%
See why you should buy with us: (Click Here)