The past year has undoubtedly been challenging for homebuyers, particularly in vibrant markets like San Diego. If you started on the journey of finding a new home only to feel overwhelmed by the hurdles, you’re certainly not alone. Many prospective buyers have paused their searches due to the difficulties presented by the current market conditions. A recent study by Bright MLS highlighted that the main reasons buyers halted their searches in late 2023 and early 2024 included:
- Inability to find homes within their budget
- Struggles to make successful offers and compete effectively
- Difficulty finding a home that met their needs
More Homes For Sale in San Diego
One of the most notable changes in the real estate market this year is the increase in the months’ supply of homes for sale in San Diego. Data from the National Association of Realtors (NAR) illustrates that inventory has grown steadily throughout 2024.
The graph below highlights the months’ supply of existing homes—properties previously owned and lived in by another homeowner. The upward trend is evident this year, indicating a more robust market.
For homebuyers, more homes coming on the market means there’s a greater likelihood of finding a property that matches your needs and preferences. This is welcome news if you previously delayed your home search due to a lack of suitable options. With more homes available, you can explore a variety of neighborhoods and styles, increasing your chances of finding your perfect match in San Diego’s vibrant real estate market. These 2024 homebuyer opportunities allow you to discover the ideal home in this beautiful city.
San Diego, known for its beautiful beaches, thriving downtown, and diverse communities, offers a unique blend of urban and suburban living. The growing inventory provides an excellent opportunity to find a home in this dynamic city, whether you’re looking for a coastal retreat, a family-friendly suburb, or a bustling urban environment.
More New Home Construction Homes
If you haven’t found an existing home that meets your needs, consider exploring the growing market of new home construction. This year, builders in San Diego have been increasing the supply of newly built homes. They are focusing on creating smaller, more affordable homes that cater to current market demands. This approach not only helps to address the long-standing issue of housing undersupply in San Diego but also offers a solution to some of the affordability challenges buyers face today. You can find these types of properties if you go inland a bit.
Recent data from the Census Bureau and the National Association of Realtors (NAR) shows that one in three homes on the market is a newly built home. This significant increase means that if you haven’t been considering newly built homes, you might be missing out on a substantial portion of available options. Additionally, many builders are offering attractive incentives, such as mortgage rate buy-downs, to help buyers afford these new homes.
It’s beneficial to discuss with your agent about what local builders have to offer. Your agent can provide valuable insights into builder reputations, contract details, and more, helping you make an informed decision. Exploring new home construction could expand your options and bring you closer to finding your perfect home in San Diego.
Reduced Buyer Competition
San Diego’s real estate market presents a favorable landscape for homebuyers in 2024. With mortgage rates lingering around 7%, the once fierce buyer demand has noticeably cooled. This shift, coupled with an increased housing supply, reduces the chances of facing intense bidding wars. Danielle Hale, Chief Economist at Realtor.com, emphasizes the positive outlook for the latter half of 2024:
“Home shoppers who persist could see better conditions in the second half of the year, which tends to be somewhat less competitive seasonally, and might be even more so since inventory is likely to reach five-year highs.”
In San Diego, this creates a unique opportunity to find your dream home with less stress and potentially at a better price. As the market becomes less competitive, homebuyers can explore more options and make decisions with greater confidence. This combination of factors makes now an excellent time to consider buying a home in San Diego.
Home Prices Are Moderating in San Diego
When it comes to prices, the San Diego real estate market is showing signs of moderation, which is a welcome change after the rapid price increases seen in recent years.
This moderation is largely due to the balance between supply and demand. As more homes become available and the intense demand eases, prices aren’t rising as quickly. However, it’s important to note that prices aren’t falling; they’re simply increasing at a more steady and normal rate. This trend is evident in the latest data, where we can see prices continuing to grow, but not at the dramatic pace of previous years.
The average forecast for home price appreciation in 2024 is positive, with growth expected to be around 3% to 5%. This is much more in line with historical norms. For potential buyers in San Diego, this means you are less likely to encounter the steep price hikes we experienced a few years ago, making it a more predictable and stable market for your investment.
The Opportunity Ahead: San Diego’s Homebuying Landscape in 2024
If you’re prepared to buy a home in San Diego, the second half of 2024 might be a prime time to make your move. While challenges persist, many of the major obstacles are beginning to ease, making the homebuying process more manageable.
Conversely, you might consider waiting. However, this comes with its own set of risks. As more buyers notice the market shift, competition is likely to increase. Furthermore, many buyers will re-enter the market if mortgage rates drop as predicted. By acting now, you can capitalize on the current market conditions and get ahead of potential future buyers.
San Diego offers a unique blend of urban and coastal living, with neighborhoods like North Park and South Park becoming increasingly desirable. The local real estate market reflects this growing interest, making it essential to seize opportunities as they arise. Taking action in the current market can provide you with a strategic advantage, ensuring you secure your dream home in this vibrant city.
Bottom Line on 2024 Homebuyer Opportunities in San Diego
If you’ve put your dream of owning a home on hold, the second half of 2024 presents homebuyer opportunities and might be the perfect time to jump back in. San Diego’s vibrant neighborhoods, beautiful weather, and thriving job market make it an attractive place to settle down. Whether you’re eyeing a cozy condo in North Park or a spacious family home in South Park, now is the time to explore your options. Contact us today, the McT Real Estate Group, and let’s discuss the exciting opportunities available in today’s real estate market. We’re here to help you navigate the process and find your perfect home in this amazing city.