The Market Is Hot
The real estate market has remained a HOT Seller’s market which is directly related to a shortage of available listings for buyers to choose from. When we first sheltered in place due to Covid and uncertainty, it appeared that there was a price break coming as sellers pulled their homes off the market and buyers withdrew offers. There were closing delays and loans were impacted. But that was short lived. The result was a shortage of supply (very low inventory) and an increase in demand (more buyers than active homes for sale) . Low inventory, with more people competing for the same property, caused a pricing increase. After Covid restrictions were lifted, people came out of their homes with a pent-up demand to buy, especially during these incredibly low mortgage interest rates we are seeing! Sellers in San Diego have great leverage over negotiations in the past months. At the moment, there is little chance of a diminished demand.
San Diego is a great place to live and will continue to be so. It is the second largest city in California, and one of the fastest-growing cities in the country. The City of San Diego also continues to outpace California’s job recovery, making a purchase or investment in real estate in San Diego, and yourself, a prudent choice. Over the past 10 years, San Diego has seen annual appreciation, and is ranked within the top 10 cities nationally, for real estate appreciation. According to Zillow, San Diego has seen the median home price appreciate by 38% since 2015. Last year was the 7th consecutive year of home price gains. According to US News, San Diego Ranks #36 as the Best Place to Live, #51 as the Best Place to Retire, #3 as the Best Place to Live in CA, #5 as the Most Expensive Place to Live, #9 as the Best Place for Quality of Life, and #12 as the Safest Place to Live!
Single Family residential new construction in San Diego is still far below the demand. It is anticipated that new construction will likely add available inventory sometime in 2021, as permits are granted and construction begins, but that still won’t be sufficient to fit the housing demands. Most of the new construction will be found in the south bay areas of Otay/Chula Vista and the majority will be multi-family.
If you have thought about selling your home, NOW is the absolute very best time to sell. Market sales to list price are at a ratio of almost 100%. Meaning there is not much of a price gap between what the sellers are offering and the buyers are buying. There is no indication out there that things will change anytime soon. If you are thinking about capturing top dollar for your home, please do not hesitate to contact me for a complimentary Comparative Market Analysis (CMA) so you can review your home’s value and appreciation.
If you are a buyer, purchasing NOW is also the very best time to purchase. Mortgage rates are at their lowest and it is better to scoop up your favorite deal before seasoned investors enter the bidding wars. It would be wise to buy if you intend on staying in the home for a minimum of 5-7 years, to allow for any market fluctuation. Buying a home in San Diego County will continue to be a sound investment and help one build wealth from the appreciation in the equity of their home. One thing is for certain: over time, your real estate assets will grow!
And did you know that the Median Home Price in San Diego County recently Hit $732,560!!
Read Times of San Diego below: