San Diego Home Prices Expected to Climb Moderately in 2024
Home prices in San Diego are forecasted to rise at a more typical pace this year. According to the latest data from seven of the most trusted sources in the industry, home prices will continue their upward trend.
Why will home prices keep appreciating? The answer lies in the supply of homes for sale. Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), explains:
“One thing that seems to be pretty solid is that home prices are going to continue to go up, and the reason is that we don’t have housing inventory.”
Although inventory has increased compared to the past couple of years, it remains low overall. This limited supply of homes will keep pushing prices up. If you’re thinking of buying a home in San Diego, the good news is you won’t face the dramatic price hikes seen during the pandemic. However, prices aren’t expected to drop. They will continue to climb, albeit at a slower pace.
Entering the market sooner rather than later could save you money in the long run. Plus, experts agree that your home will appreciate in value after you buy it, making it a sound investment. As demand remains high and supply stays limited, this desirable city will likely see continued growth in home values.
Good News for San Diego: Mortgage Rates Set to Decrease
According to predictions from Fannie Mae, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR), mortgage rates will decrease slightly in the coming months. This is excellent news for both buyers and sellers in San Diego.
When purchasing a home, even a small drop in mortgage rates can significantly reduce your monthly payments. For sellers, lower rates are likely to attract more buyers, increasing the chances of selling your property faster and potentially at a higher price. If you’ve been hesitant to sell due to the current rates, this upcoming change might be the encouragement you need.
San Diego’s vibrant housing market stands to benefit from these lower mortgage rates. With its beautiful weather, diverse neighborhoods, and thriving local economy, more affordable borrowing costs will make it easier for many to buy a home in this sought-after city. This shift can also energize the market, bringing new opportunities for buyers and sellers to achieve their real estate goals.
San Diego Housing Market: Home Sales Expected to Hold Steady in 2024
The housing market in San Diego is projected to remain stable throughout 2024, with the number of home sales expected to match or slightly exceed last year’s figures. This trend is based on forecasts from Fannie Mae, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR). Last year, 4.8 million homes were sold nationwide, and this year’s forecasted average is around 5 million, indicating a modest increase.
Lawrence Yun, the Chief Economist at NAR, sheds light on the reasons behind this trend. He states:
“Job gains, steady mortgage rates and the release of inventory from pent-up home sellers will lead to more sales.”
This means more opportunities for people looking to buy or sell their homes in the beautiful neighborhoods of San Diego. If you’re considering a move this year, now is a great time to take advantage of these favorable conditions. Let’s work together to ensure you find the perfect home or sell your current one with ease.
Conclusion of the 2024 Mid-Year Forecast on the San Diego Housing Market
If you have any questions or need assistance navigating the San Diego real estate market, don’t hesitate to contact the McT Real Estate Group. San Diego’s housing market can be complex, but with our expertise, we can help you make informed decisions. Our team is here to support you every step of the way. Contact us today to discuss your real estate needs and the 2024 Mid-Year Forecast, and take advantage of our local knowledge and professional guidance.