San Diego housing prices have been on the rise for about 9 years. According to InfoSparks, the SD County median sale price in Dec of 2018 was $559,000, versus a low of $275,000 in January of 2009 – that’s a 203% increase in just 9 years. The real estate market is steadily increased since the crash, but we may be seeing a slow down.
I personally saw a major slow down starting in November of 2018, but that may have also been a seasonal factor. I think the midterm elections, volatile stock market and government uncertainty all contributed to this slow down. Many areas in SD county also have significantly higher inventory than we’ve seen for several years.
Personally, I think we’re going to continue to see a slow down for 6-12 months. Interest rates keep rising and generally speaking, everyone under the age of 40 haven’t seen interest rates over 5% and psychologically, that 5% threshold is tough to adjust to. Once people get used to “normal” rates and see that the sky isn’t falling, I think buyers will start looking (and buying) again. I don’t think prices are going to crash, I just think there will be fewer sales for a while until buyer confidence rises.
If I were thinking about selling in the next 1-2 years, I’d sell as soon as possible. I think the likely hood of prices dropping in the near future is way more likely than prices holding or rising. If you have the ability to wait several years, you may do better in 3-5 years than you would today. Many homeowners still think the market is what it was 1-2 years ago and are pricing their homes at or above the comps. In this market, you need to be more aggressive and price your home intelligently to avoid long market times with numerous price reductions. Buyers are very savvy and typically begin their search months before ever physically looking at a home. If you come on priced too high, they may be turned off (thinking the seller is out of touch, or not serious about selling) and may not even notice it if/when you reduce the price months later.
If you’re wondering what your home is worth, or have any questions/suggestions, please contact me. Denny 858-243-2092 [email protected]
ps – clearly I’m not blogging very often, but I assure you I’m very active in the San Diego real estate market. 2018 was by far the best year Denny Oh & Associates has ever had…more info to come!