San Diego Home Prices Recovered July 2023

Real estate prices have completely recovered here in San Diego as we continue through the summer selling season, and we're getting after exactly what you need to know if you're planning on buying or selling a home here in San Diego.

 

 

Hey everyone, even though home prices have now completely recovered from the 15% market drop we went through this past year here in San Diego, you're probably continuing to hear on the news that home prices are falling. But the news looks at old real estate data, and they love to sell scary headlines to get people to click and watch. But despite the doom, gloom, and misleading information out there, home prices here in San Diego actually have returned to the high water mark that we hit in April of 2022, and we're going to dive into exactly what that pricing looks like here in just a quick minute. And my name is Curtis Chism with the Chism team. If you're looking to make a move, give me a call, text, or email, and let's chat. Or if you happen to know someone that's looking to buy, pass this video onto them and have them give me a call.

Now, let's take a look real quick at what is the main driver of the housing market, and that, of course, is mortgage rates. And mortgage rates shot up over the past year but have generally stabilized over the past four months. Now, this happened not only because the Fed was hiking interest rates but also because of high inflation. Mortgage rates are directly tied to inflation, and when inflation was at nine percent a year ago, mortgage rates had to catch up to that number. Now, rates have generally been sitting right around the high six percent mark for several months. Now, as inflation continues to get under control, mortgage rates should start to follow. That inflation fell again this past month to three percent and has been falling rapidly each month. Now, the FED keeps hiking interest rates, so we'll see how much they continue to fall, but they are sitting around seven percent right now.

Now, buyers seem to have indicated that they're okay with the high six percent, maybe seven percent, price range for interest rates, and that's fueling higher home prices. So, housing prices shot up this past month to one million dollars from nine hundred and fifty-five thousand dollars. We hit one million dollars back in April of 2022. So, we went through a 15% market correction with prices falling to eight hundred and fifty thousand dollars, and now the market has completely recovered. Condos rose ten thousand dollars to six hundred and fifty thousand dollars, and they're just twenty thousand dollars below the condo market high in May of 2022.

Inventory of homes has risen, and we have a two-month supply of homes available to sell, which is still incredibly low, sitting at 3,600 homes for a county population of over 3 million people. Now, the amount of time that homes are taking longer to sell has been getting faster and is averaging just 24 days on the market. Bidding wars on homes that are well-priced have become the norm once again. And now, if the home is overpriced, then it is taking longer to sell.

The other big data point I'd like to look at is the final sales to list price percentage. This tells us how much above or below the list price that homes on average sold for. If, on average, the final sales price is 98% of the original list price, it's considered a balanced market. Anything over indicates a seller's market, and below that indicates a buyer's market. Now, here in San Diego, we're now at 101.5% of final sales to list price, showing us we've definitely swung back into a seller's market. But it's really kind of a balanced plus market, meaning it's definitely favoring sellers overall right now, but there still are homes that are favoring buyers. But these are generally homes that are either not very desirable or are very overpriced with unrealistic seller expectations. I just listed and sold a home that went for 107.5% over the list price with a true bidding war.

Now, what does this mean for you if you're thinking of buying a home? Well, many people like to try the time the market just perfectly, but it's just not possible. And we went through a market correction this past year, and housing prices clearly bottomed out several months ago and are fully recovered now. Now, we need a specific strategy for each home that you're interested in buying. For some homes, you may be the only bidder on it, and for others, you may be up against several other offers. The strategy could involve going with a clean full-price offer or an over-ask offer. Or it could be asking for some credits to cover your closing costs and maybe asking for repair work to be done. And that's how I can help you navigate the buying process, which is to help you analyze each home and come up with a specific strategy needed and negotiate to help you buy your next home. So just give me a call, text, or email, and let's get started.

Now, if you are planning to sell a home, we really need to take a good look at your home and come up with the right strategy to successfully market and sell your home. Just like for buyers, every home is unique, and it has its own strengths and weaknesses. And sometimes, the home needs a lot of repairs, remodeling, and upgrades prior to hitting the market, like paint, carpet, landscaping, roofing work, and other times it just needs to be decluttered and thoroughly cleaned.

Now, as we head into what I would call a balanced plus market, favoring sellers, you may need to plan to do some repairs that come up on a buyer's inspections or give credits to help that homebuyer buy down the interest rate to secure the home. And that's just why it's honestly most important than ever that you give me a call so you can put together that customized plan for you to help you sell your home on the best terms that you're looking for. We'll make sure that we don't overprice the home, causing it to sit for months. Instead, we use my proven pricing strategy to generate tons of traffic online, which will turn into showings, offers, and then a bidding war that will give you the leverage that you need to get the price and terms that you want. So, if you are wanting to get an idea of what your home might sell for in today's market and what it should be priced at, just contact me today, and I'll run a no-obligation home value for you.

Well, that's a complete overview of the housing market here in San Diego. Just leave me a comment or shoot me an email back, let me know what you thought, and I'll see you on the next video.