In this video, San Diego Realtor Kyle Whissel will dive deep into the latest trends, insights, and predictions that are shaping the real estate landscape. Whether you're a buyer, seller, or simply interested in the market, this video provides valuable information to help you navigate the ever-changing industry.

Welcome to our latest update on the San Diego real estate market for July 2023. In this blog post, we'll break down the data and provide insights into what's happening in the market right now. We aim to go beyond the numbers and provide you with a deeper understanding of their implications. So, let's dive in!

Leading Indicators vs. Lagging Indicators

Before we delve into the specifics, it's essential to differentiate between leading and lagging indicators. While the media often reports on lagging indicators, which reflect past market conditions, we prefer to focus on leading indicators that provide insights into the current state of the market.

Decrease in Homes Coming onto the Market

One crucial leading indicator we pay close attention to is the number of new homes coming onto the market for sale. Compared to the same time last year, this number has decreased by a significant 41.6%. This decline can be attributed to homeowners in San Diego being hesitant to sell due to concerns about finding a suitable property to buy.

Limited Inventory and Mortgage Interest Rates

To further compound the situation, the number of homes for sale in San Diego has decreased by 26.2%. The combination of limited inventory and fluctuating mortgage interest rates (currently ranging between 6.5% and 7.5%) has made homeowners think twice about selling. Walking away from a lower mortgage rate in the three to four percent range to enter the market at higher rates in the six to seven percent range significantly impacts both the purchase price and monthly payments.

Impact on Inventory and Buyer Demand

While the number of new homes coming onto the market has significantly decreased, the number of homes going off the market (pendings) has only experienced a modest 8.4% decline. This means that the inventory of homes for sale is rapidly shrinking. The high demand from buyers, which has persisted even with interest rates ranging from three to seven percent, further exacerbates the supply-demand imbalance.

Misreported Median Sales Prices

Now, let's address how the media misrepresents the market by focusing solely on the median sales price. They often report that the median sales price in San Diego has only increased by 1.8% over the past year. While this statement is technically accurate when comparing June 2022 to June 2023, it fails to tell the whole story.

Market Fluctuations and Recovery

Between January and June, San Diego experienced a significant decline in median home prices, approximately 15%. However, from January to June alone, prices bounced back remarkably, with an increase of 17.8%. In fact, the median home price for single-family homes sold in June reached a staggering one million dollars in San Diego County.

Be Prepared for a Competitive Market

The media's misleading reporting might give the impression that the market is relatively flat, but the reality is that we've been experiencing monthly increases of 2-3% since January. The shortage of available homes for sale, combined with the high level of activity and multiple offers, creates a highly competitive market. To navigate this challenging environment successfully, it's crucial to have an experienced agent on your side.

Whissel Realty Group - Your Trusted Partner

At Whissel Realty Group, we understand the complexities of the current market and pride ourselves on keeping our finger on the pulse. In the last 60 days alone, we have assisted 150 clients in buying or selling a home. If you're looking for an agent who can help you navigate this challenging market, give us a call or send us a text at the number below. We offer a free strategy session to help you determine the best course of action based on your specific goals and needs.

Call or text us today so we can help you with your real estate goals - (619) 639-4012