San Diego Real Estate Update – February 2023

The beginning of 2023 has definitely started out with a bit of a shift. Many are wondering if the market is starting to heat back up.. In this month’s episode I’m breaking it all down for you!

Last Month’s Statistics

The first thing I’m going to do is look at our current stats for the last 30 days. We saw some pretty impressive numbers especially in regards to new listing inventory. The amount of homes that hit the market in the past month was extremely low – lower than our last two years! This tells me that we don’t have enough homeowners putting their homes on the market to meet the rising buyer demand. We had about 1,400 homes actually close and 1,600 homes go under contract. We had significantly more homes going under contract with the uptick in  buyer demand.

To sum it up, we have more buyer demand than we actually have listings right now. Since November, we have seen significantly low inventory levels and now that the buyer demand is picking back up, this could be indicative of home prices going back up in the next few months. 

Is the market beginning to shift back to a sellers market?

I wouldn’t go that far… but demand has picked up significantly. So where is this demand coming from? It seems as though the consumer is feeling a little more confident about the real estate market after experiencing such a big shift in 2022. I have been preaching for years that San Diego is a safe investment and I think a lot of people are beginning to really see that. With consumer confidence back in the market and more stability in interest rates, demand is picking back up. The Fed has done everything we had predicted they would do. They just increased another quarter percent, which we were expecting. Mortgage rates actually came down a bit after this increase as banking confidence is rising again. I predict this wave of demand will continue well through the first and second quarter this year as the market is stabilizing.

Buyer and Seller Advice

Buyers, interest rates have come back down! If you were pre-approved over the last 3-6 months, talk to your mortgage lender again and re-run numbers because that payment could have adjusted quite a bit. Furthermore, inventory is starting to shrink right now and I expect that to continue. While more homes will likely hit the market come spring and summer, it may be a little scarce right now. You need to be prepared to move quickly and get an agent that can negotiate on your behalf. 

For all my sellers out there – the market is turning back on right now! If you have been waiting on the sidelines while seeing all the doom and gloom headlines, it might be the time to get your place ready and get it on the  market. Based on the stats and the rising buyer demand, it is looking like a good time to sell right now. If you need help getting your house ready to hit the market, anyone here on the True Local team can help you!

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