Is There a Buyers’ Market in San Diego?
It’s no secret that Real Estate News is not good for those people that are investors interested in purchasing a home in the Real Estate market of San Diego. Last year, we saw the worst year for Home Sales in over ten years. This quarter, the amount of homes sold is just slightly lower than the average of the past five quarters. However, San Diego’s residential real estate market is poised to do better than most other parts of the country. That’s because the economy has picked up and there are signs that we are turning a corner (up).
So what does this mean for San Diego? The third quarter of 2021 was the hottest on record for residential real estate sales in San Diego. It was also the warmest on record. This means there was already pent up demand for properties once the recession hit and prices went down. Now that things have turned around and prices are back on the rise, there’s pent-up demand and a resulting higher cost for properties. This will cause the prices to go even higher as supply meets demand.
According to Josh Team, with the high demand and the high rates, we can expect a buyer’s market when it comes to San Diego. And that means prices should remain relatively large. In fact, there is reason to think that the last few months’ worth of sales activity was the highest since the” Pandemic” hit the suburbs. If you purchased a residential property over the past six months, then you may want to think about waiting for the price to go back up again. While the epidemic may have murdered the demand, it’s not quite killed the desire to move to the suburbs and buy a new home.
If you look at the National Association of Realtors’s national sales report, you’ll see that San Diego really outbids a number of other cities and counties. We had to compete with Phoenix, Las Vegas, Phoenix, Tucson, El Cajon and Santa Barbara. The competition didn’t get any less fierce with our neighbor to the north, San Francisco. However, we did out-price virtually all the metro areas by more than 10% during the past year or so. So, clearly we are not “lagging” behind.
In addition, San Diego’s relative isolation from the rest of the world has helped to keep real estate prices relatively low. Many buyers who are purchasing homes in the country do this because they know they can buy their dream home on the beach for less than they would pay in bigger cities. That’s one of the important reasons that real estate news sources have reported that a softening of the housing market in San Diego over the past year or so. With the exception of a short downturn in May of 2021, the County has experienced almost no growth in prices since the start of the recession.
The simple fact is that we’re entering a buyers’ market. Home buyers are working to get down payment funds and are working to qualify for a mortgage loan before they start looking for homes to purchase. That means there isn’t any real estate stock to compete with. We will most likely start to see some moderate appreciation in the market during the next few months as buyers work their way into the market and make their movements.