It’s that time of the year when San Diegans wake up from the holidays, look around and decide it’s time to get serious about those plans to move. Last year in the period from February through May, our real estate market was a virtual feeding frenzy with prices jumping by as much as 8% year-over-year in some areas, and homes selling within hours of hitting the market.
While I don’t predict the same level of activity this spring, we will see improvement from the doldrums of November and December when interest rates rose to 5.00% and home sales all but ground to a halt. Interest rates are currently back down to 4.5% and according to RISMedia, the Federal Reserve has indicated it is adopting a more “patient” policy, which is expected to keep rates from rising significantly over 2019. Definitely good news for both buyers and sellers.
So is this a good time to sell or buy in San Diego County? Yes! Inventory is still tight which continues to support a slight YOY price increase, and with the government shut-down over consumer confidence should be up. Supported by mortgage interest rates that are still at a near record low the San Diego market should be active this spring – not the crazy seller’s market we’ve experienced in the past few years, but perhaps a more “normal” market with appreciation levels of around 3.0%.
As a seller I would advise you to be realistic in both your pricing and expectations about market time. I believe we are hitting near the top of buyer affordability so there will be fewer qualified buyers for homes priced at the high end of any particular neighborhood.
Buyers, keep your eyes on homes that have been sitting on the market for a while. They are likely over-priced and may represent an opportunity. Depending on the seller’s need and motivation to sell, a lower offer at the right time might just get you the home.
As always, whether you’re ready to buy to sell, or just have a real estate question, please don’t hesitate to give me a call for a confidential, no obligation consultation.