This is Kyle Whissel from Whissel Realty Group, bringing you the latest insights into our unique and ever-changing real estate market as of November 2023. With 18 years in the industry and a wealth of experience, I'm here to dissect the current market scenario, which is unlike anything we've seen before.

Current Market Dynamics

For a while now, San Diego's housing market has been experiencing a distinctive trend. Sellers are holding back due to skyrocketing mortgage rates, which have recently been hovering in the mid to high sevens. This rate spike makes it less appealing for homeowners to sell and upgrade, especially those who locked in lower rates a few years ago.

Impact on San Diego Home Sellers

The reality for sellers is stark. Moving up to a bigger or better home now entails not just a higher property price but also a significant leap in mortgage rates. This dual increase leads to a substantial rise in overall costs, which can be daunting. It's essential for potential sellers to carefully assess their situation. Selling might make sense for those needing funds or relocating, but upgrading in the current market could be financially challenging.

Impact on San Diego Home Buyers

Interestingly, the buyer's side of the equation presents a different picture. The recent months have seen a slowdown in buyer activity, yet opportunities still exist. The lack of competition in the market can be advantageous. It allows for more thoughtful decision-making and potentially more aggressive negotiation tactics, such as asking for rate buydowns or assuming the seller's financing.

Selling in Today's Market

If you're contemplating selling, it's crucial to analyze your specific situation. While property values have risen approximately 10% over the past year, the decision to sell should be grounded in your personal needs and circumstances. Whether it's capitalizing on increased property value, relocating, or dealing with space constraints, each scenario warrants a different approach.

Buying in the Current Market

Now might be an opportune time to buy. The reduced competition means buyers can be more selective and assertive in their offers. Strategies like negotiating for mortgage rate buydowns or exploring alternative financing options can be more viable now. Additionally, with expectations of mortgage rates eventually dropping below seven or even six percent in the next 12 to 24 months, investing now could position you favorably for future market shifts.

Long-Term Outlook

Looking ahead, we anticipate a gradual normalization of mortgage rates, which will likely bring more buyers back into the market. This influx could drive property prices up further, benefiting those who choose to invest in the current scenario.

Conclusion

In summary, the San Diego housing market in November 2023 is undergoing a unique phase. While selling might not be universally advisable, buying presents some compelling opportunities for those willing to navigate the market's current dynamics. If you're considering either selling or buying, now is the time to carefully evaluate your options and make informed decisions.

Contact Us:

For personalized advice and to explore your options in the San Diego real estate market, don't hesitate to reach out. You can contact us at the number below.

(619) 639-4012