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!
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