In the bustling world of real estate, keeping abreast of the latest market trends is crucial for agents and buyers alike. Kimo Quance of Whissel Realty Group recently shed light on the San Diego real estate market as of November 2023, offering valuable insights for both buyers and sellers. Here's a comprehensive overview of what's happening in San Diego's real estate scene.



Current Market Dynamics:





Inventory Trends

Compared to the previous year, San Diego has witnessed a notable decrease in new listings entering the market. This reduction can be attributed to homeowners with favorable mortgage rates opting to retain their properties rather than venturing into a more expensive market. However, despite the decrease in new listings, the overall inventory has seen a significant increase - a 77% rise in the last year. The current supply stands at 3.2 months, a stark contrast to last year's 1.8 months. This means if no new homes were listed, it would take 3.2 months to sell all available properties.





Buyer Opportunities

For buyers, this unique market condition presents an excellent opportunity. The winter season typically experiences a slowdown in real estate activity, resulting in more homes on the market. This increased supply allows buyers greater leverage in negotiating favorable terms. Buyers are encouraged to capitalize on this window, especially with the assistance of knowledgeable real estate agents.





Interest Rate Fluctuations

Interest rates have been a rollercoaster, peaking at just over 8% but have recently adjusted to the mid-7% range. This fluctuation, combined with the seasonal slowdown and cautious approach of buyers and sellers, opens doors for negotiation. Additionally, prospective buyers can explore programs like the 21 or 321 buy-downs, allowing for reduced interest rates in the initial years of a mortgage. Assuming a loan with a favorable rate or negotiating a seller credit to buy down the rate are also viable strategies.





Market Forecasts

The real estate market is dynamic, and predictions indicate a potential decrease in interest rates over the next 12 to 24 months. This forecast is particularly relevant as we approach a presidential election year, where economic conditions tend to be more favorable. Buyers can seize this moment to secure advantageous deals, with the prospect of refinancing once the rates drop further.





Pricing Trends

Despite the fluctuating interest rates, property prices in San Diego have risen. The median home sales price has increased by 10%, with an average home sale price up by 9.9%. While this growth is notable, the market is currently experiencing some stagnation, creating a balanced playground for both buyers and sellers.





Tailored Strategies for Buyers and Sellers

Sellers:

For those needing to sell, it's essential to understand and navigate the current market nuances. Each seller's situation is unique, and a personalized approach is key to maximizing the sale potential.



Buyers:

Buyers should evaluate the various options discussed, such as loan buy-downs and assuming existing favorable-rate loans. With the right strategy, buyers can secure homes at competitive prices and advantageous terms.





Conclusion

Kimo Quance's insights into the San Diego real estate market provide a clear picture of the current landscape. Whether you're a buyer or a seller, understanding these trends and utilizing the right strategies can lead to successful real estate transactions.

For more personalized guidance and to keep up with the latest in real estate, connect with Whissel Realty Group. Stay informed and make the most of the opportunities in the ever-evolving San Diego real estate market.




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