Real Estate Market Archive

Looking at the housing market in 2025, it is quite common to wonder and, in fact, ask yourself how such changes may affect your future goals in real estate, especially if you are considering buying or selling a house in San Diego or anywhere else. To get the most accurate answers to these questions, one should turn to experts for the best real estate advice. They draw on their experience and knowledge, backed by numbers and facts, to provide clear, actionable advice for their clients.

Real estate market analysts are always on the go. They are monitoring the market movements regularly to help with real-time predictions and to assist you and other consumers further. As for 2025, there are two major variables that are likely to influence the market for residential real estate, and these two are mortgage interest rates as well as the prices of homes. Here is a quick breakdown of where these key factors currently are and what this might mean for you.

Will Mortgage Rates Drop This Year?

Many people hold high expectations for interest rates, hoping they’ll drop significantly to the low levels seen in the past. The real question, however, remains unanswered: how low will they actually go, and how quickly might they rise again? There is some good news on the horizon, which is the fact that the experts are predicting that the rates will fall somewhat in the housing market in 2025. Still, it is important to be careful with these forecasts and expectations because those 3-4% rates we had in the past are not likely to come back in the near future. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR) mentioned:

 “Are we going to go back to 4%? Per my forecast, unfortunately, we will not. It’s more likely that we’ll go back to 6%.”

Other industry experts have also pointed out that the rates might be steady in the mid-to-low 6% region as the year unfolds. Forecasts rely on the current situation, but factors like inflation and overall economic trends can still influence the future direction of rates.

That being said, don’t expect home prices to remain constant, and avoid trying to predict the perfect time to buy or sell. Rather, pay attention to the general direction and try to go from there. Working with a trusted lender and a real estate agent in your area will allow you to be more up-to-date with the rate changes and further help you decide on how it will affect your financial plan in the long run. Even a one percent change in the interest rates can make a huge difference to your monthly payments on your mortgage, especially if you are buying a home in San Diego.

Will Home Prices Drop This Year?

The quick answer is no, they likely won’t. Mortgage rates are expected to decrease gradually, bringing some relief to the masses, while home prices continue to rise at a slower, more sustainable pace. On average, expert forecasts suggest home prices will rise about 3% in the coming year, with most predictions landing in the 3-4% range. This represents a return to a more sustainable growth rate compared to the rapid price spikes we’ve seen recently.

So, if you’re waiting for a dramatic price drop before buying in the housing market in 2025, it’s important to set realistic expectations. While a significant price cut isn’t on the horizon, the slower pace of growth is good news for buyers. It means you won’t face the steep increases of past years, and any home you purchase is still likely to appreciate in value over time. That’s a smart investment for your future.

You might be wondering why prices are still rising. The answer lies in the basic principles of supply and demand. Even with more homes for sale compared to a year ago, inventory remains too low to meet buyer demand. As Redfin puts it:

“Prices will rise at a pace similar to that of the second half of 2024 because we don’t expect there to be enough new inventory to meet demand.”

Of course, the housing market varies widely from one area to another. While most markets will see prices continue to rise, some areas might experience a plateau or even slight declines if inventory grows enough to balance out demand.

To understand what’s happening in your specific neighborhood, it’s essential to connect with a real estate professional. An experienced agent can provide insights into local trends and help you make informed decisions about buying or selling in today’s market.

The housing market in 2025 is poised to bring some exciting changes. With steady growth on the horizon, more inventory hitting the market, and a bit more breathing room for buyers, it’s looking like a year of opportunity. However, the real estate landscape is never without its twists and turns. Behind these optimistic forecasts and market predictions, there are a few key factors that could alter the course of the housing market in unexpected ways.

For instance, fluctuations in mortgage rates could either attract more buyers or create hesitation, depending on the direction they take. Additionally, federal policies aimed at increasing housing supply might make it easier for buyers to find their dream homes—or they could inadvertently create challenges for sellers or developers. San Diego, known for its desirable weather, vibrant neighborhoods, and competitive market, could feel the effects of these shifts uniquely, with its balance of high demand and limited inventory playing a pivotal role.

As we dive into expert predictions for the year ahead, we’ll also explore potential game-changers that could reshape the housing market. Whether you’re buying or selling in 2025, understanding these trends will help you stay ahead of the curve.

The Big Picture: What Experts Are Saying About the 2025 Market Predictions

Before exploring the potential curveballs, let’s take a closer look at the main market predictions for home prices, sales, inventory, and mortgage rates—key indicators shaping the housing market in 2025.

1. Home Prices: Modest Growth Expected

Experts predict steady but modest growth in home prices this year, with increases estimated between 2% and 5%. This marks a slowdown compared to the rapid spikes seen in recent years, offering some relief to buyers who’ve been struggling with affordability. At the same time, sellers can still look forward to equity gains, as home values continue to edge upward. While the slower pace may not feel like a windfall for sellers, it represents a more balanced market, giving buyers a fairer shot.

In San Diego, where housing demand remains robust due to its prime location, ideal weather, and thriving communities, these national trends will likely reflect nuanced local dynamics. Homebuyers and sellers in neighborhoods like North Park and South Park may find these modest increases create opportunities for both parties to achieve their real estate goals.

Are Home Sales Finally Making a Comeback?

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.

Curious about what the housing market will look like in 2025? You’re not alone. The latest expert predictions point to some encouraging trends, particularly around two of the biggest factors affecting your real estate decisions: mortgage rates and home prices.

If you’re planning to buy or sell a home, these insights could have a big impact on your timing and strategy. Let’s dive into what the experts are forecasting for the upcoming year and how it might influence your next move in San Diego’s competitive market. Whether you’re considering settling in North Park, South Park, or any of the metro neighborhoods, staying informed on these market shifts will help you make smarter choices.

Mortgage Rates in 2025 Are Expected to Drop

Mortgage rates are a major factor when you’re considering buying or selling a home, and there’s good news on the horizon. Experts predict that after the sharp increases in recent years, rates will gradually ease throughout 2025.

While we won’t see rates drop in a straight line, the overall trend should move downward as the year progresses. There might be some fluctuations along the way, with rates responding to fresh economic data and inflation reports, but don’t let these short-term changes distract you. It’s the long-term trend that matters most for your decision-making process.

Lower mortgage rates translate to increased affordability. When rates come down, your monthly mortgage payment will decrease, allowing you more flexibility in what you can afford. This shift makes buying a home more accessible, which is a big win if you’re looking to enter the market in neighborhoods like North Park, South Park, or other popular  neighborhoods in San Diego.

However, as mortgage rates fall, more buyers are likely to jump back into the market.

Charlie Dougherty, Director and Senior Economist at Wells Fargo, highlights this by saying

“Lower financing costs will likely boost demand by pulling affordability-crunched buyers off of the sidelines.”

When that happens, competition for available homes will increase, and inventory could tighten.

So, what’s the takeaway? By understanding these shifts now, you can position yourself ahead of the crowd. Work with your real estate agent to stay informed on how mortgage rates are influencing buyer demand in your local market. Being prepared helps you navigate the competition and make smart decisions, whether you’re buying or selling.

Home Prices Are Projected to See Modest Growth

Mortgage rates are set to decline, but home prices will still rise, just at a much slower rate than we’ve seen recently. Experts predict home prices will increase by about 2.5% nationwide in 2025, a significant shift from the rapid, double-digit growth of past years. This steady rise makes it much easier for buyers to enter the market.

So, what’s driving the continued rise in prices? It all boils down to supply and demand. As more buyers re-enter the market due to falling mortgage rates, demand will rise. At the same time, sellers who were previously hesitant due to high rates are more likely to list their homes, increasing inventory. With more homes available, prices should rise at a more sustainable pace—creating a healthier balance for both buyers and sellers.

Local Market Conditions May Vary

While these national projections offer a general outlook, the housing market can vary greatly from one region to another. For instance, some areas might experience faster price growth, while others could see more gradual increases or even flat prices.

As Lance Lambert, Co-Founder of ResiClub, points out:

“Even if the average national home price forecast for 2025 is correct, it’s possible that some regional housing markets could see mild home price declines, while some markets could still see elevated appreciation. That has been, after all, the case this year.”

Even in markets where prices may flatten or dip slightly, the substantial appreciation of recent years means that homeowners are still in a strong position. That’s why it’s essential to consult with a local real estate expert who understands the trends in your specific area—whether you’re looking to buy or sell in neighborhoods like North Park, South Park, or other metro areas of San Diego. Local market knowledge is key to navigating the next steps with confidence and making informed decisions.

Bottom Line on What to Expect with Home Prices and Mortgage Rates in 2025

With mortgage rates expected to drop and home prices forecasted to grow at a steadier pace, 2025 is looking like a more favorable year for both buyers and sellers. Whether you’re planning to purchase your first home or sell your current property, these trends could present great opportunities.

If you have any questions about how these changes could affect your specific situation, reach out. Having a local expert like the McT Real Estate Group by your side will help you navigate the San Diego market with ease and take advantage of what’s coming next.

More Options With Lower Rates For Buyers In the Fall

If you’ve been curious about the current trends in property values, you’re not alone. With an overload of information circulating, it’s easy to feel overwhelmed and unsure about your next steps.

As a buyer, you might be worried about overpaying in today’s market. On the other hand, if you’re planning to sell, the fear of not reaching your desired price may be holding you back. To help you make informed decisions, here’s a clearer picture of what’s really going on with property values—whether you’re buying or selling, especially in the competitive San Diego real estate market.

Property Values Prices Are Slowing, But Not Dropping

Across the nation, property value growth is starting to slow down. This shift means that prices are still on the rise, but not at the breakneck speed we saw in recent years. In San Diego, this trend is similar, as the local housing market continues to see steady demand. The data, such as the Case-Shiller Index, shows how this change unfolded between 2023 and 2024.

However, it’s important to note this doesn’t mean property values are falling. Every indicator still points to positive growth. So, while you may hear discussions about a cooling market, what that actually means is that prices aren’t spiking as dramatically as they did during the housing surge a few years ago, especially in cities like San Diego. The market here remains competitive, with homes continuing to appreciate at a more moderate pace.

What’s Next for San Diego Home Prices? It’s All About Supply and Demand

Curious about where home prices are headed next? The future of prices hinges on supply and demand, and this dynamic can look different depending on your local market — especially here in San Diego.

On a national level, the number of homes for sale has been gradually increasing, but we’re still not seeing enough inventory to fully meet the current demand from buyers. This shortage is helping to keep upward pressure on prices, even as the growth in home price appreciation has started to slow. Danielle Hale, Chief Economist at Realtor.com, points out that the slight increase in available homes is bringing more balance to the market, saying:

“. . . today’s low but quickly improving for-sale inventory has ushered in more market balance than would otherwise be expected . . . This should help home prices maintain a slower pace of growth.” 

However, there’s another factor that could impact home prices moving forward. Experts predict that mortgage rates may continue to decline, which could encourage more buyers to jump back into the market. If buyer demand picks up again in places like San Diego, we may see home prices rise further and faster in the coming months.

With San Diego’s desirable location and steady influx of buyers, the balance between supply and demand will play a crucial role in shaping the housing market’s trajectory.

Why You Should Partner with a San Diego Real Estate Expert

While national real estate trends offer a broad perspective, the market is highly localized—especially in dynamic areas like San Diego. What’s happening with home prices in your neighborhood may differ significantly from national averages. Factors like local supply, demand, and neighborhood desirability all influence pricing uniquely. That’s why working with a real estate agent who truly understands the nuances of the San Diego market is essential.

A local expert not only provides the most up-to-date market data but also understands the specific trends that impact your neighborhood. Whether you’re looking to sell or buy, a San Diego-based agent will have the insights to guide you through competitively pricing your home or finding a property that matches your lifestyle and budget. Their guidance equips you to make well-informed decisions tailored to your area’s unique market conditions.

Bottom Line on San Diego Property Values

While home prices continue to rise, the pace has slowed compared to previous years. Whether you’re considering buying, selling, or just curious about your home’s current value, it’s essential to have a clear understanding of the market—especially in dynamic areas like San Diego. Let’s connect for personalized guidance tailored to your unique situation. Whether you need insight into the local real estate trends or help navigating your next move, the McT Real Estate Group is here to assist you every step of the way.

Understanding Home Equity for San Diego Homeowners

Let’s talk about San Diego’s Real Estate Market in August of 2024

When someone decides to bake, and they have kids helping out, there’s usually a lot of excitement and high hopes of pulling out a flawless cake from the oven. Mixing the ingredients, pouring the batter, and closing the oven door all happen with anticipation. The sweet aroma fills the kitchen as the timer counts down. However, upon opening the oven, disappointment sets in as the cake fails to rise as expected. Time seems to drag on as everyone’s excitement fades away while waiting for that cake that turns out not so perfect.

Sometimes, the baking process goes perfectly, and other days, after hours of effort, only one comes out looking right. And then there are days when nothing turns out as planned—despite trying different recipes and adjusting every ingredient, the result is disappointing, to say the least. A big part of baking is perfect measurements, observing what others do successfully, and coming prepared with an extra dose of patience.

What Does the  San Diego’s Real Estate Market Have To Do With Baking? 

Many of today’s home sellers resemble first-time bakers. They enter the market excitedly, expecting multiple offers to roll in within days. They’ve heard stories about the market being on fire earlier this year. Back in March, homes sold at or above their list prices, and the demand seemed insatiable. However, after placing the FOR-SALE sign in the yard and opening their homes to buyers, the days stretch into weeks, and sometimes those weeks turn into months. The housing market has shifted. What was once a hot Seller’s Market has now become more balanced, where pricing your home correctly is the key to success.

52% of all homes available for sale have been listed for a minimum of 30 days. What’s more notable is that 28% of these homes have been waiting for over two months without receiving an acceptable offer. It can be quite challenging to maintain a home that is showing condition for such a period, especially if there are kids or pets in the household. While it’s common for luxury properties to remain on the market for longer, many homes in the affordable price range are also facing delays. For instance, nearly half of the homes priced under $750,000 have been listed for over 30 days, with around 28% waiting for two months.

Market Time for Homes $750,000- $2,000,000

For homes priced from $750,000 to $1 million, 20% have been listed for sale for 60 days or longer. As the price range goes up to between $1 million and $2 million, this percentage rises to between 21% and 27%. For homes priced over $2 million, the wait time gets even lengthier, with a range of 35% to 57% of sellers waiting two months to secure a buyer.

Homes in San Diego County are currently taking longer to sell compared to this year and last year. The Expected Market Time, which indicates the duration needed to sell all listings at the buying rate, now stands at 73 days. In February, this figure was 43 days, marking the pace in 2024. This shift reflects a change in the market dynamics. Around this time last year, homes were sold within 45 days, showing a faster selling process than what we are observing today.

The housing market in San Diego County has experienced a slowdown since the beginning of spring. Even though there is an 8% increase in demand compared to the year, more homes are being put up for sale. Despite listings than before the pandemic, this year has seen a 22% rise in listings compared to 2023—resulting in an inventory growth from 2,569 homes in February to 4,570, marking a significant 78% surge. At this time of year, 43% of homes were available for sale on the market.

Pricing Your Home Right: The Key to Success in San Diego’s Real Estate Market

Our housing market has changed significantly compared to earlier this year and last year. If you are a Seller, be patient and set your asking price carefully. You have to factor in the home’s condition, location, upgrades, and amenities. And then there may be times that you and your Realtor thought the price you were going to go on the market with was the correct price, but for whatever reason, the market says differently. Make sure to make the adjustment quickly and jump in front of the market.  Unfortunately, some sellers resist expert advice and refuse to price their homes at Fair Market Value. As a result, they’re still waiting without any offers.

San Diego’s Active Inventory

The active listing inventory in San Diego County increased by 111 homes over the past two weeks, reaching 4,570—the highest since August 2022. Inventory growth is slowing, with a peak expected soon, followed by a decline in the fall and a sharp drop during the holidays. Last year, the inventory was 43% lower, and pre-pandemic levels had 57% more homes.

Many homeowners are choosing to remain in their homes because of the low mortgage rates, resulting in a decrease in new property listings. In the month of July, a total of 3,287 sellers decided to put their homes on the market. This number reflects a 33% drop compared to COVID levels but represents a 21% increase from the same period last year.

Increase Demand From Home Buyers

Demand increased by 70 pending sales, up 4%, driven by lower mortgage rates. At 6.5%, rates are a full percent lower than in April, making homes more affordable and boosting buyer interest. We expect demand to strengthen as rates drop further. 

The Federal Reserve is monitoring indicators such as the PMI and jobless claims, which have the potential to influence mortgage rates. Depending on the results of this week’s reports, rates may increase or decrease. Most people are eagerly waiting for this.

Demand was 8% lower last year, while pre-COVID averages were 70% higher. As demand rose, the Expected Market Time dropped slightly to 73 days, compared to 45 days last year and 68 days.

Conclusion: Adapting to the New Market

As we approach the half of the year, it’s evident that there have been changes in the San Diego real estate market. Sellers should maintain patience. Set prices thoughtfully to achieve outcomes. Given the evolving demand and varying mortgage rates, being well-informed and flexible is crucial. Whether you’re in the process of buying or selling, being aware of these developments will empower you to navigate the market.

More Homes for Sale in San Diego: What to Expect in Your Area

Let’s Talk About More Homes on the Market and What You Need to Know.

The past few years have been undeniably challenging for homebuyers in San Diego due to the limited availability of houses. However, there’s good news on the horizon. The market is finally showing signs of improvement. This year, more homes on the market are becoming available. The graph below, based on the latest data from Realtor.com, highlights that in April 2024, there were more homes for sale than in the previous few years (2021-2023). This increase is a welcome change for buyers looking for more options. Here, you can see the featured homes for sale in San Diego.

According to Realtor.com:

“There were 30.4% more homes actively for sale on a typical day in April compared with the same time in 2023, marking the sixth consecutive month of annual inventory growth.”

This expanding inventory is a positive sign for those navigating the housing market. But does this increase in available homes make house hunting easier? The answer is both yes and no. Using recent weekly data from Calculated Risk, the graph below shows that despite the recent growth in listings, the number of homes for sale is still significantly lower than during the last normal year in the housing market.

San Diego, known for its beautiful beaches, vibrant neighborhoods, and year-round pleasant weather, is a highly desirable place to live. As more homes come onto the market, potential buyers have a better chance of finding their dream home in this dynamic city. Our team is here to help you navigate these changes and find the perfect home that meets your needs.

What Does This Mean for You?

If you’ve been looking to buy a home but put your plans on hold because you couldn’t find what you were searching for, now might be the right time to start again. You’ll see more options than you did over the past few years, although the selection is still limited.

To explore these growing options, it’s wise to work with a trusted local real estate agent. Real estate is all about location, and an agent with local expertise can provide valuable insights on homes available in your desired area and show you more homes in the market. San Diego, with its beautiful weather and vibrant neighborhoods like North Park and South Park, offers unique opportunities for buyers.

As Bankrate explains:

“In today’s homebuying market, it’s more important than ever to find a real estate agent who really knows your local area — down to your specific neighborhood — and can help you successfully navigate its unique quirks.”

Partnering with a knowledgeable agent can make all the difference in finding the perfect home in San Diego. They can guide you through the intricacies of the market and help you uncover hidden gems you might not have found on your own. So, if you’re ready to take advantage of the increasing home inventory, reach out to a local expert today.

Bottom Line on More Homes on the Market in San Diego

Let’s team up to keep you informed about the San Diego real estate market and the latest updates on available homes for sale.

When you partner with the McT Real Estate Group you’ll have a dedicated expert by your side, providing you with the latest information and insights. San Diego is a vibrant and diverse city with many unique neighborhoods, each offering its own charm and amenities. Staying updated on the market trends here is crucial, whether you’re looking to buy your dream home or sell your current one.

With our expertise, you’ll always be in the loop about the factors that could impact your move. From understanding market dynamics to finding hidden gems, we’re here to make your real estate journey smooth and successful. Let’s navigate the San Diego market together with ease and confidence, ensuring you make the best decisions every step of the way.

Places to Live in San Diego for Cheap

 

In today’s dynamic housing market, the availability of homes for sale significantly shapes your opportunity, especially if you’re considering selling your house. With the current limited supply, your property gains a distinct edge, making it a standout choice for potential buyers. This advantage is even more pronounced in San Diego, where the unique blend of urban charm and coastal beauty makes every home that hits the market for sale a hot commodity.

However, the landscape is shifting. Recent trends indicate an increase in the number of homes entering the market. Data from Realtor.com reveals a noticeable uptick in new listings—homeowners who are now choosing to sell. This change can be seen in the graph. It highlights a rise in the number of “For Sale” signs dotting yards compared to this time last year, signaling a growing willingness among homeowners to move forward in this bustling market.

“. . . sellers turned out in higher numbers this March as newly listed homes were 15.5% above last year’s levels. This marked the fifth month of increasing listing activity after a 17-month streak of decline.”

As San Diego continues to attract attention for its appealing lifestyle and robust real estate opportunities, understanding these trends can help sellers like you make informed decisions that capitalize on the current market conditions.

Ready to Sell? Why Now is the Ideal Time

Considering putting your house on the market? Now is the ideal time to act, especially before others in your neighborhood decide to list their properties. In San Diego’s real estate market, each new listing plays a crucial role, and delaying your decision might mean missing out as buyers shift their attention to fresher options in the area.

Picture this scenario: your neighbor lists their home for sale. Suddenly, the stakes are higher. You’re not just selling a home; you’re vying for buyer attention right on your own street. It’s crucial that your home not only gets noticed but also captures the hearts of potential buyers, making it their top choice over others nearby.

This is when the expertise of a dedicated real estate agent becomes invaluable. A proficient agent does more than simply list your home; they spotlight its distinctive features that appeal to current buyers, ensure it looks its best, and strategically price it to draw genuine interest. With their guidance, your home will be more than just seen—it will be memorable and highly sought after.

If you’re ready to move forward, seize this opportunity. As the selection of available homes in San Diego gradually expands, you’ll not only discover more options for your next residence but also benefit from the advantage of marketing your property while it can still stand out as a highlight in the local market.

Wrapping All Things Up with More Listings in San Diego’s Market

San Diego’s real estate market is buzzing, yet inventory remains surprisingly low. Now is the perfect time to make your move before the competition heats up. Don’t miss the opportunity to stand out in your neighborhood. Connect with us at the McT Real Estate Group today, and let’s explore the advantages of preparing your home to go on the market early, ensuring you get the best possible deal before more properties flood the market.

Property Tax in California: Stability Through Proposition 13

Today, we’re diving into the current market dynamics, especially focusing on what’s impacting our first-time home buyers and the distinct narratives unfolding across different market segments.
I’m , Z. with the McT Real Estate Group here with your go-to update on the San Diego real estate scene.

 

🏡 First-Time Buyer Challenges:

First-time home buyers, listen up! You’re facing a tough market out there. Not only are mortgage rates climbing, squeezing your budget, but the number of entry-level homes hitting the market is also dwindling. It’s becoming increasingly challenging to find that perfect starter home in San Diego.

📊 The Tale of Two Markets:

We’re really seeing a tale of two markets here. On one side, there’s the starter home segment, which is tight, competitive, and frankly, a bit stagnant. On the other side, the broader market continues to move, but with its own set of challenges.

👫 Millennial Buyers at a Standstill:

A significant wave of millennials, now hitting their early 30s—the prime age for first-time home ownership—are ready to settle down, start families, and step into home ownership. But with the double whammy of rising mortgage rates and high home prices, many are finding themselves priced out or choosing to wait. This standoff between eager buyers and firm sellers has kept our market in a delicate balance, with limited inventory giving sellers the upper hand.

Stay tuned as we break down these trends further and provide you with the insights you need to navigate this complex market. Whether you’re buying, selling, or just staying informed, I’m here to help you make sense of it all!

Here’s a San Diego Market Update:

• Active Listings: We’ve seen a 9% increase in active listings in the last couple of weeks, totaling 2,992 homes on the market.
• New Listings: Interestingly, compared to the pre-COVID era, new listings have significantly decreased. We’re looking at 41% fewer homes coming on the market than the average between 2017 to 2019.

📉 Demand Analysis:

• Pending Sales: Demand has seen a slight downturn, with a 7% decrease in pending sales, bringing us to a total of 1,764.
• Market Pace: Expected Market Time has increased from 44 to 51 days. This means homes are taking a bit longer to sell compared to last year’s 32 days.

🏡 Price Segment Focus in San Diego:

• Homes below $750,000 are moving at about 43 days on market.
• In the $750,000 to $1 million range, it’s around 36 days.
• For those eyeing luxury homes, especially those above $2 million, market time ranges from 88 to as high as 321 days for ultra-luxury above $6 million.”

🔍 Luxury Market & Distressed Properties:

• Luxury homes account for 22% of our inventory and show a different pace compared to more standard properties.
• Distressed homes, which include foreclosures and short sales, make up a tiny fraction of our market. We’re talking just 0.3% of listings and demand.”

🏘️ Wrap-Up:

Overall, our San Diego market update is showing varied dynamics across different price segments. For sellers, pricing right is crucial in this market. Buyers, you’ve got options out there, but understanding the pace of the segment you’re looking at is key.
Don’t forget to hit that like and subscribe button if you found this information helpful! For more personalized advice, reach out to me directly or visit our office. Let’s make your real estate dreams a reality in beautiful San Diego!

Is This a Good Time to Sell a House in San Diego?

 

In the wake of the groundbreaking settlement involving the National Association of Realtors or most commonly know as NAR and its implications on the residential real estate industry, there’s a whirlwind of speculation concerning its impact on buyers and sellers. The headlines have been working overtime, painting a picture of drastic changes and potential financial burdens for all parties involved. However, the reality is far more nuanced, and not everyone stands to lose. As your dedicated real estate guide, we’re here to cut through the noise, offering clear insights and strategic advice tailored to the current landscape.

Understanding the Settlement’s Impact

The heart of the matter lies in the changes mandated by the settlement, particularly affecting how business is transacted in the real estate world. A pivotal shift is that sellers are no longer allowed to display Buyer Agents’ compensation in the MLS. This might seem like a small detail, but it fundamentally alters the dynamics of how agents engage with properties and represent their clients.

The Shift in Agent Compensation Visibility

Under the current system, a buyer’s agent can easily see what compensation they stand to earn by bringing a buyer to a particular home. This transparency serves as an incentive, encouraging agents to show homes offering competitive compensation. While ethical standards should prevent agents from steering clients based on this information, the reality is that not all agents adhere to these ideals, especially in competitive markets like San Diego, where the agent count soars into the tens of thousands.

With the upcoming changes and settlement set to take effect in July, this compensation will no longer be visible in the MLS, casting uncertainty on the agent’s earnings. This new scenario will likely lead to buyer agents seeking agreements directly with their clients, establishing compensation through flat fees or percentages.

Strategic Buyer and Seller Adaptations

However, this doesn’t mean that buyers will bear the brunt of commission costs. The new rules permit an approach where buyers can offer a higher purchase price, requesting a seller concession at closing to cover the agent’s fee. This method merely shifts the terminology from “commission” to “concession,” maintaining the financial dynamics while adhering to the new regulations.

Another notable change is that buyers must now have an official agency relationship with a Realtor to view properties, including open houses. This requirement may introduce new operational challenges, but it’s not entirely unprecedented. We navigated similar waters during the COVID-19 pandemic, which required additional paperwork for property viewings. At first, it felt clunky and annoying, but everyone adjusted quickly, and things progressed smoothly.

Key Takeaways for Buyers and Sellers

What does all this mean for you, whether buying or selling a home in San Diego? Essentially, the fundamentals haven’t changed. Sellers aim to attract as many potential buyers as possible to maximize their home’s selling price. On the other hand, buyers seek access to exclusive listings and insights that only a well-connected agent can provide.

This industry shift may reduce the number of realtors in the market, favoring those who can deliver genuine value and foster robust client relationships. For buyers, this reinforces the importance of choosing an agent who can navigate these new waters, ensure access to the best properties, and negotiate favorable terms.

Looking Ahead: Embracing Change with the National Association of Realtors Settlement

In the face of sensational headlines and rampant speculation, our advice is to focus on the facts and strategies that matter. The real estate landscape is indeed evolving, as are most industries. With informed decisions and strategic planning, buyers and sellers can navigate these changes successfully.

Here at the McT Real Estate Group, we’re committed to keeping you ahead of the curve with the latest strategies and insights. As we move toward these changes, expect more frequent updates from us, ensuring you’re well-prepared for this new era in real estate. Remember, amidst all the noise, our expertise and dedication to your success remain unwavering. We look forward to guiding you through these changes and beyond.

If you have questions, please don’t hesitate to call us and have a chat. We are here to help.

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