Kyle Whissel, owner and CEO of Whissel Realty Group aims to provide you with real-time insights into what's happening in the San Diego real estate market.

Forget dated media reports; we're selling over 600 homes this year, and we know what's happening right now in San Diego. So, let's dive into the most recent San Diego Market Update.

The State of San Diego Housing Inventory

First and foremost, the number of new homes coming onto the market has decreased by almost 40% compared to last year. This is a significant drop, and it's having a ripple effect across the San Diego housing landscape. The number of homes going pending or off the market has also decreased, but only by 8.2%. The net result? We're facing a shrinking inventory, down approximately 23% from last year.

Key takeaway: If you're a buyer, this is crucial information. The market remains fiercely competitive, especially for quality homes that sell fast.

The Impact of Mortgage Rates

Mortgage rates have seen a significant hike. Only a month ago, rates were in the mid to high sixes. At the time of writing, they've risen to the mid-sevens. However, the demand for homes is still outpacing supply, primarily due to the low inventory. So despite the high rates, home values continue to climb.

Key takeaway: Even though the rates aren't buyer-friendly at the moment, high demand due to low inventory keeps pushing home values up.

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Tips for Potential Buyers

So, what can you do if you're looking to buy a home in this challenging market? While the rates are far from ideal, there are strategies to make your purchase more affordable.

1. Seller Credits and Buy Downs: You can request credits from the seller to buy down your mortgage rate for a limited time, making the initial years more affordable.

2. Adjustable Rate Mortgages (ARM): Consider opting for an ARM. It can get you a significantly lower rate for the first few years.

Key takeaway: Don't let the high rates discourage you. There are creative ways to enter the market, and taking the plunge now might offer less competition.

Is Now a Good Time to Sell?

As a San Diego Realtor, you might expect me to always advocate for selling, but that's not necessarily the case. Whether or not now is a good time to sell depends on various factors like your current mortgage rate, and what you plan to do after selling. For instance, if you're considering renting, know that the rental market is also hot right now. I recently rented out a four-bedroom home for $6,000 per month!

Key takeaway: Before deciding to sell, evaluate your specific circumstances. It might make sense if you're planning to move out of state, but not necessarily if you're planning to move into a more expensive home with higher rates.

Conclusion and Next Steps

Whether you're looking to buy or sell, the San Diego real estate market is intricate and requires thorough planning and strategy. At Whissel Realty Group, we offer free consultations to assess your situation and help you make informed decisions.

Feel free to call or text us at the number provided for a comprehensive consultation tailored to your needs.

(619) 639-4012