For the first time in over three years, the housing market is seeing a shift: existing home sales have risen year-over-year, reaching a seasonally adjusted annual rate of 3.96 million this past October.
So, what’s the takeaway with Home Sales?
This uptick in sales could signal that the housing market is beginning to rebound, even though 2024 is projected to have the lowest total number of home sales on record. It’s a glimmer of hope for buyers and sellers alike after years of slowed activity in the real estate market.
Recent data from the National Association of Realtors (NAR) highlights three key trends shaping the current housing landscape:
- More homes are selling, and prices are climbing. This means homeowners are building equity as their property values continue to grow, which is a big win for those considering selling.
- Inventory is improving. Buyers in San Diego, and across the country, are starting to notice a little more breathing room with a greater selection of homes available to choose from.
- Demand is picking up again. Even with mortgage rates higher than they’ve been in the past, the increase in year-over-year sales shows that buyers are reentering the market.
For sellers in San Diego, where housing demand is consistently high, this translates to a prime opportunity to capitalize on rising home values. Whether you own a historic Craftsman in North Park, a trendy condo in South Park, or a family home in the metro neighborhoods, equity growth could make this the perfect time to sell.
For buyers, the expanding inventory means more options, especially in sought-after neighborhoods like North Park, South Park, and the surrounding metro areas. With competition softening slightly, it might finally be your chance to find that dream home—though keeping an eye on mortgage rates will be key.
In the sections below, we’ll unpack the data driving these trends, explain how price growth and inventory shifts are reshaping the market, and share actionable tips for both buyers and sellers.
1. More Homes Are Selling, and Prices Are Still Rising
Attention homeowners: the value of your property is likely to continue to grow. In October, the median existing-home price increased to $407,200, marking a 4% rise compared to last year. This achievement represents the 16th consecutive month of year-over-year price growth, underscoring a resilient housing market.
Here in San Diego, we’re experiencing similar positive trends. The median home price in October reached approximately $900,000, which is about a 5% increase year over year. This surge indicates that homeowners in our local market are seeing significant growth in their equity. For many, this means it’s an ideal time to consider selling and capitalize on the rising market values.
As Lawrence Yun, Chief Economist for the National Association of Realtors, aptly put it:
“The ongoing price gains mean increasing wealth for homeowners nationwide.”
His insight resonates strongly here in San Diego, where the housing demand remains robust. Looking ahead, Yun also expects home prices to continue their upward trajectory over the next two years. He predicts a 9% year-over-year increase in 2025 and a 13% increase in 2026. This forecast suggests that the trend of growing home values is likely to persist, offering even more opportunities for homeowners in our area.
For sellers in San Diego, this information is especially encouraging. With neighborhoods like North Park, South Park, and other metro areas in high demand, rising prices mean you could achieve a premium when listing your home. It’s a compelling reason to explore your options and perhaps make that move you’ve been considering.
In summary, the combination of increasing home sales and climbing prices presents a promising landscape for homeowners. Now might be the perfect time to take advantage of these favorable conditions in the San Diego real estate market.
2. There’s More Inventory to Choose From
Good news for buyers: the days of ultra-limited housing options are starting to ease. Nationwide, the inventory of unsold homes rose by 19% compared to last year, providing buyers with more choices than they’ve seen in quite some time.
Locally, the San Diego market saw a 6% increase in housing inventory this October. This marks a welcome shift, especially for those navigating popular neighborhoods like North Park, South Park, and other metro areas.
This growing inventory impacts both buyers and sellers:
- For Sellers: With more homes hitting the market, competition is increasing. To attract buyers, it’s essential to prepare your property to stand out. Focus on strategic staging, setting a competitive price, and using impactful marketing strategies to make your home shine.
- For Buyers: Finally, there’s a bit more breathing room. A wider selection of homes means you can take the time to explore options without the pressure to bid immediately on the first house you see.
If you’ve been holding off on buying because of limited options, this shift could be the balance you’ve been waiting for. And for sellers, now’s the time to make your home as appealing as possible to stand out in a market offering more choices.
Whether you’re buying or selling in San Diego, understanding how this increase in inventory affects your goals is key to navigating the market with confidence.
3. Buyers Are Starting to Come Back
The housing market is showing signs of renewed energy as buyers begin to return. According to NAR’s latest report, home sales have increased year-over-year for the first time since July 2021. Even with mortgage rates hovering around 6.78% for a 30-year fixed-rate loan, many buyers are re-entering the market, encouraged by job stability and growing confidence in the economy.
What’s even more promising is that mortgage rates appear to have stabilized, offering predictability to buyers weighing their financing options. Lawrence Yun, NAR’s Chief Economist, anticipates rates could drop into the lower 6% range by 2025, which could further boost buyer activity.
This growing demand creates a unique opportunity for motivated sellers, especially in highly desirable San Diego neighborhoods like North Park and South Park. With buyers showing increased interest, a growing inventory providing more choices, and home prices holding steady, sellers are well-positioned to connect with an active market.
For sellers, this is an excellent time to list your home while interest in the market builds. And for buyers, while rates remain higher than in recent years, they’ve stabilized enough to plan with more certainty.
In San Diego’s competitive real estate market, understanding these dynamics can help you take advantage of this new wave of opportunity, whether you’re buying, selling, or considering your next move.
Final Thoughts on Home Sales Finally Making a Comeback
If you’ve been thinking about selling your home, now could be an excellent time to make a move. With home prices continuing to rise and buyer demand gaining momentum, listing your property soon can help you attract motivated buyers and achieve a strong return on your investment. However, with more inventory on the market, your home needs to stand out. Focus on staging, professional photography, and pricing your home competitively to make a lasting impression.
For buyers, there’s reason to feel optimistic. With rising inventory, you’ll have more options to find a home that meets your needs and fits your budget. While mortgage rates remain higher than they were a few years ago, they’ve leveled out, bringing a bit more predictability to your planning. If you’re ready to buy, start by getting pre-approved, know your financial boundaries, and take your time as you explore your options in San Diego’s vibrant neighborhoods.
Whether you’re buying or selling, personalized guidance can make all the difference. We’d love to help you navigate this evolving market and create a strategy tailored to your goals. Reach out to the McT Real Estate Group to schedule a discovery call and let’s explore your next steps together.