San Diego Real Estate and Community News

 

 
July 17, 2024

What Is Happening in the Real Estate Market So Far?

A closer look at what’s been happening in the housing market this mid-year.

 

Today, I wanted to break down the first half of 2024 with a market update. There are some interesting things happening in the market. So, let’s take a closer look at what’s been happening.

 

We are still seeing the median sales price continue to rise. This year, year-over-year, we saw a double-digit level of appreciation of 11%, which is still healthy.

 

Inventory levels also increased by 43%. However, it's still considered a seller's market with a 2.3-month supply. It is the first time we've seen inventory levels above two months in four years, but we are still in a seller's market. Anything under six months is considered a seller's market. However, anything under three to four months will still bring strong demand. There are a lot of buyers out there relative to what’s out there as far as selling.

 

We're not going to see $100,000 and $200,000 sale prices over the list price.

 

There’s a slight dip in the list price to sell price. We’ve seen properties sell over the list price. Now we're seeing things on average, selling just under 100%. That, paired with the inventory levels, is a sign that the market's going to cool off a little bit. We're not going to see $100,000 and $200,000 sale prices over the list price. That could be a good sign for the buyers feeling a little bit beat up in the market when it was so hot this past spring.

 

We'll have to pay attention to that a little bit more as things progress. All of these things are just on a countywide level. Different markets have different statistics. If you guys want to know more about your specific situation or your community, feel free to reach out to me at (619) 200-3236 or on the web at www.sdcoastalagent.com.

Posted in Market Updates
June 11, 2024

4 Realtor Secrets for a Successful Home Sale

Stand out from your competitors by effectively positioning your product on the market.

 

Setting your home up for a successful sale is important if you want to get the most money possible. That’s why I’m sharing my trade secrets to position your home for a successful sale:

 

1. Identify your target market. You need to know the profile of your potential buyers. Find out their tastes, their needs, and their criteria when looking for a home. Once you know this, you can effectively tailor your property to appeal directly to them. Remember that the more buyers you attract, the more offers you’ll get, potentially driving up your home price.

 

2. Highlight your home’s unique selling points. What is it that sets your home apart from the competition? Perhaps you are located in a prime location, have recently renovated your kitchen, or have a backyard. Try to assess your property and give focus on what sets it apart from other properties.

 

3. Address functional obsolescence. Are there any outdated features or repairs needed in your house that could deter buyers? Consider ways to improve or minimize these functional issues to make your house more appealing and avoid resistance from potential buyers.

 

Underpricing your home could leave money on the table in markets where buyers are not willing to pay above the asking price.

 

4. Strategic pricing. This is the most important element when selling your home. You want to understand the mentality of your potential buyers in our current market. If you set the price too high, even in a market where buyers are willing to go above asking, you might scare them away, thinking that they have to offer much more than the listed price. This could discourage them from making an offer. On the other hand, underpricing your home could leave money on the table in markets where buyers are not willing to pay above the asking price.

 

Having a professional Realtor like myself is valuable. Someone who knows the pulse of the market and understands how buyer mentality can shift, even in hot markets, can give you the advantage you need when selling. If you are interested in selling your house in San Diego, reach out to me. You can call me at (619) 200-3236 or visit www.sdcoastalagent.com.

Posted in Selling Your Home
May 30, 2024

3 Reasons Why the San Diego Market is the Best Value

Why San Diego’s real estate market is the best of the major CA markets.

 

San Diego continues to be at the top of the real estate market when it comes to best value among all the major markets in California. Today, I will highlight three reasons why San Diego remains at the top:

 

1. Affordability. Taking into consideration the four major markets—San Francisco, Los Angeles, Orange County, and San Diego—we still have the lowest priced real estate. This makes homeownership easier and more attainable.

 

2. Beautiful beaches with easy coastal access. Imagine living near the best beaches that you can think of and not having to drive for hours or go through any mountain ranges to get there. That’s what the San Diego lifestyle is all about. Compared to Los Angeles, where commuting can be stressful, the beaches of San Diego are readily available and open to all. The proximity to beaches and its accessibility add value to San Diego real estate.

 

3. Limited supply and high demand. Bordered by Mexico to the south, the Pacific Ocean to the west, mountains to the east, and Camp Pendleton to the north, San Diego’s geography limits how much development can happen in the county. These restrictions are a good thing when paired with growing demand to attract investors and homeowners. As companies expand in California, San Diego’s affordability is likely to draw them in, further boosting demand.

 

The proximity to beaches and its accessibility add value to San Diego real estate.”

 

Down the road, we are always going to have strong demand, affordability, a great lifestyle, and limited development, San Diego has it all. If you are interested in investing, buying, or selling in San Diego, reach out to me. You can call me at (619) 200-3236 or visit sdcoastalagent.com. As always, I am here to help you navigate the market and guide you towards a successful move.

Posted in Buying a Home
May 15, 2024

Buyer Concessions for Sellers Looking for New Homes

Two concessions you can take when looking for a new home after selling.

 

I have a lot of clients who want to buy a home but need to sell one first. Now, one of their main concerns is not being able to find a new home to stay in because the market is low on inventory. If you share the same concern, then I’m here to share with you some options.

 

While low inventory can make home hunting a bit challenging, it also presents a great opportunity for sellers. With high buyer demand, you might be surprised by the concessions that buyers are willing to make. Some of these concessions might include the following:

  • Longer escrow period to find your next home after selling your current one.
  • A rent-back agreement where you can stay in your current home after the sale, giving you a temporary living space while searching for a new place.

A longer escrow period or rent-back agreement frees you from the “contingent on sale” restriction.”

 

A longer escrow period or rent-back agreement will free you from the “contingent on sale” restriction, giving you the flexibility to make competitive offers on new homes. The best first step to take is to talk with a real estate agent like me and also meet with a lender to determine the best financial option for your situation. It is also good to explore the possibility of keeping your current home. Depending on your financial situation and market conditions, it might be possible to keep two properties in San Diego, creating a potential rental income stream or future investment opportunity. Don’t be discouraged by the market’s low inventory; reach out to me and let’s look at the best options for your real estate needs. You can call me at (619) 200-3236 or visit sdcoastalagent.com. I can help you navigate the market and guide you towards a successful move.

Posted in Buying a Home
April 25, 2024

Thinking Of Buying A Home When Interest Rates Drop?

Don’t miss out on your dream home because of waiting for rates to drop.

 

Interest rates are one of the key factors that home buyers are concerned about when looking for their next home. It is only natural to think it wise to wait for interest rates to drop before finally starting to look for a house. While it might sound like a smart move, there are a few things that you should consider:

 

1. Increased competition. When rates go down, buyer demand usually rises. This means that you have to be ready to compete for available homes. This competition will potentially drive up prices beyond what you might see with higher interest rates.

 

2. Limited inventory. The housing market currently has low inventory. With more buyers interested due to lower rates, you might lose out on your dream home if someone else outbids you.

 

This competition will potentially drive up prices beyond what you might see with higher interest rates.

 

Given those two considerations, what’s the alternative? The most sensible answer is to buy the home that you want now, even with a slightly higher interest rate. Then, when rates finally drop, you can refinance to a lower rate. By doing this, you can secure your dream home and potentially save money in the long run.

 

If you have any questions about real estate, you can reach out to me at 619-200-3236. Call me, text me, or send me an email. I’d be happy to talk with you. You can also visit my website at sdcoastalagent.com

Posted in Buying a Home
April 8, 2024

What’s Going on In San Diego’s Housing Market?

Here’s what you need to know about the state of our housing market.

 

What’s been happening in our housing market so far this year? To find out, I’m diving into the latest numbers from the first quarter of San Diego’s market.

Beginning with San Diego County, the median sale price has increased 6.7% since this time last year. Notably, 3.5% of that growth occurred within the first quarter of this year, which suggests our market is looking strong in 2024.

The list-to-sales-price ratio has now surpassed 100% again, with properties often selling for $100,000 or more over the listed price. Based on this, it’s clear that buyers are gaining more confidence in our market again. Cash also remains king, with 35% of transactions in coastal and metro areas being all-cash offers.

The average days on market have decreased by 11%, with properties selling faster than the 30-day mark. However, inventory levels have remained stagnant due to fewer sellers listing their homes, resulting in fewer pending transactions. Despite this, the market remains healthy, with consumer demand effectively absorbing available inventory.

Buyers are looking for affordable opportunities to enter the market.

That being said, real estate is hyperlocal, and some areas are doing better than others. Some zip codes, like Cardiff by the Sea, have experienced slight declines, while others, such as Clairemont and Allied Gardens, have seen substantial appreciation rates of 13% to 15% in the first quarter of this year. This reflects a growing interest in more affordable communities and outer areas as buyers seek opportunities to enter the market.

If you’re buying or selling a home in our area, you need an expert who understands each neighborhood’s unique situation. Call or email if you have any questions in the meantime; I look forward to hearing from you!

Posted in Market Updates
March 23, 2024

What’s Happening With Housing Inventory?

Here’s what buyers and sellers need to know about housing inventory.

 

What’s been happening with inventory in our market recently? There’s been a lot of confusion about this topic because there seems to be some confusion about whether they're rising or falling. Let's take a look at the numbers together. Inventory levels are slightly higher compared to last year, but it's only a small increase, around half a month's worth. Currently, we're at about 1.5 months of supply, down from the peak of 1.8 months last year. For reference, six months of inventory is considered balanced for buyers and sellers, so we are still in a strong seller’s market.

Looking at the charts, you can see that the number of active listings and new listings coming onto the market has decreased by about 22% and 21%, respectively, compared to last year. This suggests a trend toward decreasing inventory levels.

“Houses are selling for nearly 100% of their list prices. ”

On the other hand, buyer activity is increasing, leading to list prices and sale prices creeping up. We're nearing a point where homes are selling for close to 100% of their listing price, and bidding wars are becoming more common. Median sale prices have also gone up by almost 4% since last fall. These changes are partly due to decreasing interest rates, which are encouraging more buyers to enter the market. If you have any questions about this or any other real estate topics, feel free to reach out to me at (619) 200-3236 or visit www.sdcoastalagent.com. I look forward to hearing from you!

Posted in Market Updates
March 11, 2024

Is a Recession Coming? What It Means for Housing

Find out what’s in store for the housing market and changes in the economy.

 

What’s been going on in the housing market this year? There's been a lot of talk lately about a potential recession and its impact on the housing market. So, let's look deeper into the data and see what it tells us.

Economists have been going back and forth on whether a recession is on the horizon. Based on some data from the Wall Street Journal, the economists were in agreement that there would be a recession.

However, their views have shifted. This year, due primarily to low unemployment rates (currently at 3.7%), most experts believe a recession is unlikely. The historical average unemployment rate since the 1940s is 5.7%, and for the 2008 housing market recession, it was a much higher 8.3%.

“Even if a recession occurs, it likely wouldn't be severe or driven by a housing market crash.”

 

Current data suggests a healthy economy, with unemployment well below historical averages. While predictions indicate a potential rise in unemployment, it's still expected to stay below the 5.7% average.

Even if a recession occurs (defined as three consecutive quarters of slowing GDP), it likely wouldn't be severe or driven by a housing market crash. Interestingly, housing market prices have actually increased during most past recessions. Some data shows that four out of the last six recessions saw positive appreciation in housing prices.

While there may be fewer overall opportunities, there could be pockets of opportunity for buyers. When people lose jobs and lack savings, they might need to sell their properties, creating situations where buyers can find good deals.

If you'd like to discuss real estate further, feel free to reach out at (619) 200-3236. I look forward to hearing from you.

Posted in Market Updates
Feb. 26, 2024

Maximize Your Home's Potential: Top Tips for a Standout Spring Sale

Four tips to help sellers prepare for the spring real estate market.

 

As we bid farewell to winter and embrace the upcoming spring season, many of you may be contemplating putting your house on the market or exploring potential sales. To guide you through this process and ensure a successful sale in the competitive spring market, I want to share some key elements you need to consider.

1. Start with a spring-cleaning mentality. Embrace the spirit of spring cleaning by decluttering and organizing your home. Consider a storage unit for items you wish to keep but don't necessarily need during the selling process. Hosting a yard sale is also a great way to declutter and make a little extra money.

2. Property staging. Take a closer look at property staging. It's not just about adding items; it's also about decluttering and neutralizing your home to appeal to a broad range of potential buyers. The goal is to help buyers envision themselves in the space, ultimately leading to more offers and a higher selling price.

“Showcase your home in its best light and make the most of the spring real estate market.”

 

3. Freshen up your yard. Even in the winter months, investing in plants for your yard can make a significant difference when you decide to put your home on the market. Plant them now so they can establish themselves, creating a vibrant and healthy appearance in the coming months. Curb appeal is crucial for a great first impression.

4. Find a listing agent. One of the essential steps is finding a reliable listing agent. Consider reaching out early in the process to discuss your plans and develop a game plan tailored to your needs. Planning ahead is key, and having a seasoned professional by your side can make a significant difference in the selling process.

If you're thinking about selling your home, don't hesitate to reach out to me. I'm here to help you navigate the process and create a strategy that works for you. Call me at (619) 200-3236 for a personalized conversation about your specific property and needs.

Posted in Selling Your Home
Feb. 15, 2024

The Hidden Risks of Holding Out for Spring Market

Waiting for spring could mean missing out on your ideal home.

 

As the housing market evolves, the phenomenon of FOMO (Fear of Missing Out) plays a significant role in decision-making, especially when considering the timing of purchasing a home. Many buyers hold off during the winter months, anticipating the spring market's increased inventory will present the perfect home—a potential unicorn that might just be a myth.

Recent trends, however, suggest a different strategy might be wise. Inventory has decreased by 20% from its November peak, marking a significant shift to just about a one-month supply. This dwindling inventory is unprecedented in recent years, making the current market particularly challenging for buyers waiting on the sidelines.

“For those on the fence, consider this: the ideal home may already be within your grasp.”

 

Moreover, an unexpected rise in median sale prices of homes by 3.5% from December to January further complicates the wait-and-see approach. Typically, the holiday season sees a cooling off in the market, offering buyers a chance to snag a deal. This year, instead, prices surged in a single month, reminiscent of the period from 2021 to 2022 when looming interest rate hikes spurred buyer motivation.

This combination of decreasing inventory and interest rates is fueling a competitive environment for buyers, making it a critical time to act. Waiting for the elusive spring market could not only limit your options but also place you in a more competitive and costly bidding environment.

For those on the fence, consider this: the ideal home may already be within your grasp. Waiting for more inventory could lead to missed opportunities and regrets. If you're navigating the market and need guidance or have questions, don't hesitate to call or email me. The right time to find your fit in the market might just be now.

Posted in Buying a Home