Hey there, folks! I’m here to give you the lowdown on the current state of the housing market in America’s Finest City. Let’s dive right into it!
Last month’s statistics
Let me start by setting the scene for you. In May alone, we had a total of 1,300 homes hit the market. Now, you might think that’s a decent number, but it’s not nearly enough. We need more inventory to meet the soaring demand. To put it into perspective, over 1,600 homes went pending and off the market, while more than 2,100 homes successfully closed escrow. What does this tell us? For the fourth consecutive month, demand is outstripping supply, which means prices are likely to continue rising.
The real game-changer in our market lately has been the fluctuating interest rates. With the government’s back-and-forth on increasing the debt ceiling, banks got spooked and bumped up rates to over 7%. Ouch! Luckily, the debt ceiling debacle has been sorted out, and rates are slowly creeping back down. Nevertheless, they’re still hovering around that 7% threshold.
So, what does this mean for us? Well, let me crunch the numbers for you. In March, April, and May, when rates were around 6.5%, the market came alive once again. Consumer confidence soared, as they felt rates were stabilizing and likely to drop eventually. This led to a surge in buyer activity. However, in the past two weeks with rates above 7%, we’ve seen some buyers hit the brakes. Nothing too drastic, but it seems we’ve found a little bit of equilibrium. Prices probably won’t skyrocket again until interest rates come back down.
To all my buyers out there – you need to be proactive, aggressive, and quick on any property that catches your eye. With the limited inventory and high demand that San Diego has been experiencing for the past 15 years, there’s bound to be competition. Sometimes, you might even need to step out of your comfort zone and stretch a little to secure your dream home. Let me share a personal anecdote with you. I once passed up on a property I really liked, thinking that an extra $25,000 was too much to spend. In the heat of the moment, it felt like too much, but in hindsight, that small amount wouldn’t have made much of a difference in the long run. So, my advice? Don’t let smaller dollar amounts stop you from snagging your dream home. Take a leap and make it happen!
Now, for all my sellers out there – I’ve got a crucial piece of advice specifically for you. Right now, we have a surplus of buyers on the lookout for move-in ready homes. People are not as keen on renovation projects at the moment, so listings that are beautifully presented and ready to go are the ones that are flying off the shelves. Make sure your home is in tip-top shape and ready to impress. That’s the key to a speedy and successful sale.
Well, there you have it, my friends! If you have any burning questions or need guidance in this ever-evolving market, don’t hesitate to reach out to me or someone from the True Local team.
If you would like a FREE strategy call with me, please reach out. I love helping people through these tough decisions.
- If you are thinking about buying or selling we would love to help!
- Visit us at TrueLocalRealty.com
- Or give us a call at 888-503-3117
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