Hey guys! I’m back at it with the latest San Diego real estate update. I want to keep you in the loop on what’s happening in the market, and this month’s update is particularly interesting. Let’s get right into it!
Last month’s stats
Let’s start by looking at last month’s statistics to see where the market currently stands. In April we had around 1,200 new listings come on the market, which is decent but not as much as we need at this time of year. Meanwhile, over 1,700 homes have gone into escrow, and more than 2,000 have been sold. This means that we have a severe shortage of inventory, which has been consistently low for the past four months.
But don’t worry, the residential market is still going strong. Over the last six months we have seen consistent loan applications coming in from a wide range of buyers. The issue isn’t a lack of buyers, it’s that we just don’t have enough sellers putting their homes on the market. Many homeowners are hesitant to put their homes on the market due to locked-in interest rates or the instability in the economy. This has led to a lack of inventory and a more competitive market for buyers. Despite this, our market has almost rebounded to our 2022 numbers, with values only about $6,000 off from last year’s peak.
Now, there is one area of concern that I think will impact the market quite a bit in the next couple of years. San Diego is pushing for more affordable housing, and most of the developments we’re seeing are affordable housing units and studios/one-bedrooms. When this inventory comes onto the market, we expect to see rental rates in that market either stay flat or potentially decrease. If you’re looking to invest in a one-bedroom property, you might have some negotiating room, and if you’re selling one, you might need to lower the value to make the sale. However, two-bedrooms and larger properties are not expected to be affected, so that’s still a safe haven for investors.
Overall, the real estate market in San Diego is still robust, and it’s a great time to be a buyer or a seller. If you have any questions or are interested in buying or selling a home, please don’t hesitate to reach out to me or someone on my team. We’re here to help and guide you through the process. Thanks for tuning in, and I’ll catch you on the next update!
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