Are you curious about what to expect in the San Diego real estate market for 2022? In this video, San Diego Realtor Jeremy McHone will take a look at some market trends that are expected to occur in the coming year. If you're thinking of buying or selling a property in San Diego, then this video is for you!

What's up, everybody? I'm Jeremy McHone with the Whissel Realty Group, and I'm going to do a quick market update for the county of San Diego for you. You might have heard a lot of things are happening in the market: the market has shifted, the market is in decline, you might even heard the market is crashing. Let's talk about the numbers and what that translates to as for you, as either a home buyer or a home seller. The most recent numbers are out for the month of June because we are, right now, in July, so there's always a lag when the numbers come out.

But, it's kind of interesting what happened. The market is definitely changing. We've been in a very low inventory market for over two years now. And every time I've done one these videos for the last two years, all I've talked about is how inventory's crazy low and getting lower and prices are skyrocketing. Well, that's starting to change, finally. Namely, the first thing that's happened is inventory starting to grow. So the amount of homes for sale this month is up 19%, 18.7 to be exact. And so, why did that happen? You might think, "Well, a lot of people put their home on the market, so that's why inventory's grown.

" Actually, no. New listings is still down. So there's still less people putting their home on the market, but there's more homes for sale. How does that happen? That happens because the amount of homes that went off the market and into escrow is down 35%. That's a big number. So, if you think about it, it makes sense. Less homes are coming off the market, 35% less homes are coming off the market. Therefore, there's more homes on the market even though the number of homes that are coming on is smaller than it should be. So what does that mean? How does that happen?

That means that there's not enough buyers buying houses anymore. Interest rates have gone up. Interest rates are over 6% right now. So as interest rates have gone up, buyers have fallen out of the market. When buyers fall out of the market, less homes come off the market, which means inventory grows. So these numbers kind of make sense. There's less buyers buying, so homes are sitting on the market. And so even if there's not a lot of new homes coming on the market, there's not enough coming off, so inventory is growing every month. What does that mean? That means that we're shifting from a seller's market into a buyer's market, where we're going to have lots of homes for sale and not enough buyers to buy them.

I know that sounds weird because that's the opposite of what I've been saying for the last two years in these videos, but it's actually kind of healthy. We are in a very low inventory market for a long time, and the price jumps that we were seeing were unsustainable. So what does that mean for you? If you're a home buyer, that means you got a lot more options right now. It's actually the best time to buy a home that I've seen in the last couple years 'cause you have more options and you're probably not going to get into a bidding war. You're probably going to be the only offer 'cause there's just so many options of homes for sale. If you're worried about the fact that prices are probably going to start declining and are currently declining, in my opinion, I could see how that would make you want to wait. However, keep in mind that the reason that this is happening is 'cause interest rates have gone so high.

So if you wait for prices to come down, you might get priced out just by the increase in rates. If you're a home seller, it means that when you put your home on the market, you're not going to get a bidding war in the first five minutes. You're going to have to price it appropriately, you're going to have to hire a professional, and you're going to have to do some good marketing and some negotiation to get that home sold. It's not going to be as easy as it was for the last two years 'cause there's just too many, too much competition right now if you're a home seller.

If you've been thinking about selling your home, I recommend you do it as soon as possible and don't put it off because prices are starting to decline. And in my opinion, they're probably going to keep declining throughout the rest of the year as we see inventory growth. It's going to get harder to sell your home. If you're on the fence about buying or continuing to rent, yes, interest rates are high right now. However, I would point out to you that even with high interest rates, you're going to be paying down a loan balance rather than throwing that money away in rent.

So I still think that buying is a better option than renting right now, and I think it's going to get more expensive to buy as rates increase. And you also get some tax advantages to owning a home as well. And keep in mind that if you buy right now and rates go up, you're going to feel pretty good about that interest rate at 6% when they're at seven or 8%. If you buy right now and rates go down, you're going to be able to refinance and lower that payment anyway. And if rates go down, most likely, we're going to see prices go back up again, so you're going to be in a good position.

The one person that may think about waiting right now or might be a good idea is if you're an all cash buyer. If you have cash, it might not hurt to wait a couple months and see where the market goes 'cause prices might come down even more, and you might get that much of a better deal. You just got to weigh that against the fact that while your money sits in the bank, it's still getting eaten up by inflation. So that's the balance you got to weigh against each other. If you have questions, drop a comment below or shoot a DM to me. I'm happy to chat with you a little bit if you're thinking about buying or selling at home. I'm Jeremy McHone with the Whissel Realty Group.

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