It’s my favorite time of year when I get to share my predictions for the San Diego real estate market. Let’s dive into what I believe lies ahead for 2024,
Reflecting on 2023:
Last year posed challenges for real estate nationwide, with a 23% decrease in closed home sales due to high-interest rates. However, when it comes to values that’s a different story… San Diego county stood out across the nation experiencing a 3.3% appreciation in average sales price despite the lower sales figures. This was attributed to the interplay of low inventory and sustained demand that San Diego continues to have.
Predictions for 2024:
Inventory and Demand:
I am optimistic about a positive shift in inventory levels. Ideally, we will see an increase from the current 4,000’ish properties to a more robust 5,000-7,000 properties for sale across San Diego county. This surge in available homes will likely result in more buyer demand based on the common scenario of (when people sell… they need to buy). We will also see buyer demand pick up as Interest Rates come down. While demand may not reach the peak seen in 2022, the market is expected to stabilize and hopefully see four to five months of rotating inventory. This is what is needed to be in a more healthy market.
Interest Rate Outlook:
Keeping a close eye on the Federal Reserve’s statements and predictions from Fannie Mae and Freddie Mac, it seems that interest rates are on a downward trajectory, potentially reaching the mid to low fives by the end of the year. As rates become more favorable, I expect a surge in buyer activity, positively influencing the market.
Homeowners can anticipate a favorable outlook this year. Driven by pent-up demand from potential buyers waiting for lower interest rates, I predict property appreciation to rise within the range of 5-7% this year, offering healthy and sustainable growth.
Buyer and Seller Advice for 2024:
My advice to potential buyers is not to wait and enter the market as interest rates decline. As rates go down, property prices will go up so buy now and refinance later! The one thing you can’t change when you buy a home is the price you paid, however you can always refinance and adjust the mortgage payment 😉
Sellers – Buyers are increasingly seeking move-in-ready properties, addressing the condition of your home can significantly impact its market appeal. Prioritize the presentation of your property to attract potential buyers. Reach out to us to learn more about our Hands-Free-Selling system, designed to provide the upfront capital and assistance for your home renovations, ensuring you sell it for the best possible value.
The 2024 San Diego real estate market is looking promising. With a forecasted increase in inventory, rising buyer demand, and favorable interest rate adjustments, both buyers and sellers have opportunities to navigate a more balanced market. If you have any questions or need personalized guidance, feel free to reach out to me or the True Local team!
- If you are thinking about buying or selling we would love to help!
- Visit us at TrueLocalRealty.com
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