Mortgage rates are undeniably influencing today’s housing market in San Diego. This change might make you wonder if it’s still the right time to sell your home and move. With San Diego’s unique market dynamics, understanding the impact of mortgage rates is crucial.
To help you navigate this, we’ve highlighted three key questions you might be asking, along with the data to provide clear answers. Whether you’re considering the vibrant neighborhoods of North Park or the charming streets of South Park, these insights will help you make an informed decision about selling your house in San Diego.
Should I Wait to Sell My Home in San Diego?
If you’re considering waiting to sell your house in San Diego until mortgage rates drop, here’s what you need to know. Many others are thinking the same thing.
While mortgage rates are expected to decrease later this year, waiting for that could mean facing more competition. As rates dip, more buyers and sellers will flood the market.
“Even a modest drop in rates will bring both more buyers and more sellers into the market.”
This means if you hold off, you might encounter rising home prices and more multiple-offer situations when you’re ready to buy your next home. In San Diego’s competitive real estate market, timing is crucial. Selling now could help you avoid the rush and get a better deal before the market heats up again. Plus, San Diego’s desirable neighborhoods like North Park and South Park are always in demand, making it a great time to list your property.
Are Buyers Still Out There?
Absolutely, buyers are still actively looking to purchase homes in San Diego, even now. While some might be waiting, there are still a significant number of buyers in the market. Let’s dive into the data to see what’s happening.
The ShowingTime Showing Index measures how often buyers are touring homes. The graph below uses this index to display buyer activity for March over the past seven years.
You’ll notice that demand has dipped slightly since the so-called ‘unicorn’ years (highlighted in green). This drop is due to several market factors, including higher mortgage rates, rising home prices, and limited inventory. However, to get a true sense of today’s demand, it’s essential to compare our current situation with the last normal years in the market (2018-2019), rather than the exceptional ‘unicorn’ years.
Focusing on the pink bars in the graph provides a clearer view of how 2024 compares. This comparison offers a fresh perspective on the current market.
Even nationally, demand remains strong compared to the last normal years in the housing market (2018-2019). This trend holds true in San Diego as well, where the desirable lifestyle, beautiful weather, and vibrant communities continue to attract buyers. So, there’s definitely still a robust market for your house to sell.
Can I Afford To Buy My Next Home?
If you’re worried about how you’ll afford your next move with today’s rates and prices, there’s some good news for San Diego homeowners: you probably have more equity in your current home than you realize.
In recent years, homeowners in San Diego have gained record amounts of equity, thanks to the city’s thriving real estate market. This equity can significantly impact your ability to purchase your next home. You might even have enough to buy all-cash, eliminating the need for a mortgage.
Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), highlights this trend, saying:
“ . . . those who have earned housing equity through home price appreciation are the current winners in today’s housing market. One-third of recent home buyers did not finance their home purchase last month—the highest share in a decade. For these buyers, interest rates may be less influential in their purchase decisions.”
By leveraging your home equity, you can navigate the San Diego housing market more confidently and secure your next home with ease.
Conclusion on Selling Your House in San Diego
If you’ve been pondering these three crucial questions and they’ve been holding you back from selling your home, I hope this information eases your concerns and have your questions answered. A recent survey from Realtor.com reveals that over 85% of potential sellers in San Diego have been contemplating selling for more than a year. This shows that many homeowners like you are still on the fence about making a move.
However, the same survey also highlights that 79% of sellers who recently decided to list their homes wish they had done so sooner. This indicates that taking the leap can lead to positive outcomes.
If you’d like to discuss any of these questions further or need more information about selling your home in San Diego, let’s connect. The McT Real Estate Group is here to help guide you through the process and make your home-selling experience as smooth as possible.