Understanding the Current Market Dynamics

As we delve into the San Diego real estate market in November 2023, it's essential to grasp the real happenings behind the headlines. Kimo Quance from Whissel Realty Group brings us valuable insights into these trends.

Inventory Changes and What They Mean

• Comparison with Last Year: Compared to the same time last year, we're seeing a significant decrease in inventory. October last year had more properties on the market than this year.

• Reasons Behind Inventory Shifts: Homeowners with favorable mortgage rates are choosing to hold on to their properties. This reluctance to sell leads to fewer homes entering the market.

• A Closer Look at Supply: Despite the month-over-month decrease, the overall inventory has increased by 77% compared to last year, translating to a 3.2-month supply of homes as opposed to 1.8 months last year.

Opportunities for Buyers

• Winter Buying Advantages: Winter is often an ideal time for buyers. With more homes on the market, there's more room for negotiation.

• Market Conditions: The current market offers a unique opportunity. Although there is twice the inventory compared to last year, new listings are scarce.

• Interest Rate Trends: Interest rates have seen a slight decline after peaking. This creates a favorable condition for buyers to negotiate better deals.

Strategies for Buyers in the Current Market

• Navigating Interest Rates: With predictions of decreasing interest rates in the upcoming 12 to 24 months, buyers can consider programs like a 2-1 or 3-2-1 buydown, or negotiate a seller credit to reduce their interest rates temporarily.

• Loan Assumptions: Buyers might also consider assuming loans with favorable rates or refinancing once the rates improve.

• Timing the Market: The current slowdown in sales creates an advantageous scenario for buyers to enter the market before a potential influx of buyers when interest rates drop.

What Sellers Need to Know

• Current Pricing Trends: Despite fluctuating interest rates, home prices have seen an upward trend, with the median and average home sale prices rising by approximately 10%.

• Market Stagnation: Although prices are up, there's a hint of stagnation in the market, suggesting a potential opportunity for buyers.

• Seller Strategies: For those needing to sell, it’s crucial to understand the unique aspects of your situation and strategize accordingly.

Final Thoughts from Kimo Quance

Kimo Quance emphasizes the importance of understanding individual needs and situations, whether you're buying or selling. With his expertise, navigating the San Diego real estate market becomes a more informed and strategic process.

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