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As we embark on this journey together, let's embrace the opportunities that 2024 brings, fostering collaboration, innovation, and growth. We are looking forward to the exciting successes, meaningful connections, and boundless possibilities that 2024 may bring.
San Diego Real Estate
Coming off seven straight months of declining home values in 2022, we started January 2023 with an invigorated market. The extreme scarcity of homes available to purchase (fewer than 2200 properties throughout the County), coupled with slightly improved affordability due to the combination of lower prices and declining interest rates, resulted in steadily increasing home prices. By the end of 2023, home prices in San Diego County surpassed the peak reached in May 2022.
In 2022, the Federal Reserve increased the Federal Funds Rate from 0 to 4.5% and further raised it to 5.5% in 2023. Inflation eased from 6.4% in December 2022 to 3.1% in November 2023. As a result, the FED indicated there will likely be multiple rate cuts to the Federal Funds Rate in 2024 to prevent an excessive slowdown of the economy and the potential risk of a recession.
Despite the resilience of the overall US economy, supported by a robust labor market in some sectors and growing consumer spending, signs point to a cooling economy. Consumer savings rates are at their lowest levels since 2009, and credit card debt has risen sharply. Historically, mortgage interest rates decrease in a subdued economy. As mentioned in our previous newsletters, the housing market is expected to heat up as a result of a decrease in interest rates, leading to an inevitable increase in home prices.
Quantitative economist Steven Thomas has been analyzing the San Diego market since 2012 and offers the following predictions:
- If the economy cools during the spring (50% chance), home values will rise between 4% to 7% for the year.
- If the economy cools during the summer or autumn, home values will rise between 1% to 4% for the year.
Regardless of when the economy cools, it is unlikely to trigger a wave of foreclosures and short sales. Distressed properties remain below pre-pandemic levels, and homeowners have substantial equity.
Attempting to time the market does not typically result in a favorable outcome. If you have questions or concerns, please reach out so we can work together on a plan tailored to your specific circumstances. We will provide guidance and be by your side every step of the way.
The adage "there is no time like the present" has never been more true than it is when considering the California housing market. Let me demonstrate why:
Today, if you buy a $1,000,000 home with 20% down at a rate of 7.75%, the principal and interest payment is $5,731. Assume you wait for rates to drop by 1%, but that same home has appreciated 10% to $1,100,000 for a payment of $5,707.
The monthly savings by waiting equates to $24 a month, but you would have missed out on $100,000 in equity. In addition, you are now financing an extra $100,000, which equates to paying an extra $133,000 over a 30-year term.
Purchasing now secures your foothold in a competitive real estate market and allows you to benefit from potential property appreciation. Ultimately, the advantages of purchasing now and refinancing later when rates dip outweigh the uncertainties of waiting for potentially lower rates.
If you would like to discuss this or have any other questions related to mortgage financing please contact me at 619-405-8510 or email@example.com.
Kip Davis, Mortgage Consultant
First Californa Funding
NMLS # 257102, DRE # 01495658
WEST MISSION VALLEY/ NEAR UNIVERSITY OF SAN DIEGO
5760 Riley Street Unit 2
2 BD | 1.5 BA | 866 SF | $549,000
This beautifully updated condo that is within walking distance to USD will be hitting the market tomorrow! Contact me today at 619.890.2877 for more information before it is marketed to the public.
2 BD | 2 BA | 1370 SF | $1,795,000
Immerse yourself in the breathtaking water views that surround this 23rd-floor luxury residence in Savina, one of downtown San Diego’s premier high rises. The west-facing orientation offers captivating Pacific Ocean, San Diego Bay, and vibrant city views, making this one of the most sought-after and rarely available floor plans in the community. The generously sized primary suite provides a tranquil retreat, while the kitchen with Thermador appliances, exudes modern sophistication and elegance...
8 BD | 6 BA | 3912 SF | $2,600,000
This impressive property, located in a Transit Priority Area in San Diego's desirable North Park neighborhood, features 5 updated units across 2 structures, 2 car garage on a 6,250 sqft lot with alley access. Improvements include: sewer, roofs, HVAC systems, water heater, foundation, electrical, and flooring. $10,500/mo in current rents and once stabilized could generate $15,000/mo. North Park is centrally located to major freeways, Coronado, downtown San Diego, Balboa Park and beaches make it a highly sought-after area for both residents and investors.
If you are interested in any of our current or upcoming listings, call me at 619.890.2877 for more information!
Congratulations to our clients who are now under contract!
Our long-term client in El Cerrito got an unexpected job offer out of the area and we needed to move quickly to get her home on the market. We received multiple offers on her home within 5 days of our marketing launch, securing a motivated and strong buyer!
Our clients who were ready for more space contacted us after finding "The One!". They submitted a compelling offer to secure a beautiful townhome in Oceanside. We are honored to be the team they selected and are looking forward to closing day!
3 BD 2 BA 1423 SF $1,069,000
3 BD 4 BA 2311 SF $855,000
SUN, JAN 14TH | 6:15AM
Turning out the winter season, get your running shoes on for a scenic race along the coasts of Carlsbad. Registration is available for a full, half, or 5k courses. Swag included!
JAN 24 - 27TH
Farmers Insurance Open
This iconic PGA Tour returns to Torrey Pines in 2024 for a week of golf you don't want to miss. Tickets are on sale now to enjoy the fun in the sun, the views, the vendors, and of course... the golf!
JAN 26TH - APRIL 4TH
Beyond Van Gogh
The Del Mar Fairgrounds is welcoming back this unique immersive experience, taking you through the psyche and art of the genius that is Van Gough. Step into one of the paintings, or learn more about the inspiration behind it all.
Lifestyle Tips and Tricks
The 10 Best Real Estate Markets for 2024
A stubborn lack of inventory and high mortgage rates kept many prospective homebuyers at bay for most of 2023. But as we head into the new year, which markets are poised to see the strongest combined increase in home sales and listing prices?
Pantone Color of the Year 2024...
"In seeking a hue that echoes our innate yearning for closeness and connection, we chose a color radiant with warmth and modern elegance. A shade that resonates with compassion, offers a tactile embrace, and effortlessly bridges the youthful with the timeless."
- Leatrice Eiseman, Executive Director, Pantone Color Institute
8 Interior Design Trends Going Away in 2024
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10 Buzzworthy Home Features in the New Year
Stylish storage, bolder patterns and textures and colors beyond the whites and grays are expected to shake up home design in 2024.