Welcome, fellow San Diegans, to your Q1 real estate recap! First, let’s talk about the Federal Reserve and their interest rate hikes. They’ve been pretty relentless since March of last year with the benchmark interest rate now hovering at 5.00%.They’re really like that friend who keeps trying to get you to save money by making it harder to spend. But hey, at least it’s working a little bit – mortgage rates have dipped slightly and pending sales are up… ooo wait, that’s not what they were trying to accomplish! It just goes to show you that Real Estate has always been investors #1 choice during uncertain times.
However, affordability constraints are still a major issue for many homebuyers. It’s like trying to buy a taco in La Jolla – sure, it’s possible, but you’ll probably have to pay more than you were expecting! And unfortunately, the stats back this up – inventory remains low and prices across San Diego have increased 1.8% this quarter.
But it’s not all bad news. Homes are selling, and fast! Pending sales are up compared to last quarter, however our already low inventory levels continue to decrease. It’s important to keep in mind that home values are dictated by supply and demand – and the bottom line is we just don’t have enough supply. So, prices are projected to go up over the next quarter.
Days on the market have gone up quite a bit, which is like waiting in line for In-N-Out in Mission Valley – it’s not fun, but you know the payoff will be worth it. And with days on the market increasing by a staggering 87.0% for detached homes and 105.3% for attached homes, it’s clear that buyers are taking their time and being a bit more cautious with their purchases.
Overall, the market seems to be heating up a bit. Consumer confidence around the real estate market is improving, and hopefully we the FED will allow us to create some stability in the market by not raising rates any more.
So there you have it, folks – your Q1 real estate recap. Remember, buying & selling a home is a big decision, so take your time and do your research. And if you happen to see me in La Jolla, feel free to offer some taco-buying advice – I’ll need all the help I can get.