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Happy July! As we step into the second half of the year, we are excited to embrace the summer season and all its warmth. July marks a time of vibrant energy, renewed enthusiasm, and new beginnings. Read on for real estate news, home tips and tricks, and more - curated just for you.
San Diego Real Estate
After a bumpy ride in the third and fourth quarters of 2022, the value of homes in San Diego County started showing positive growth in January 2023 and has been steadily increasing ever since. The rate of increase is not as rapid as the 2% per month surge we experienced in the early months of 2022. Nevertheless, the overall trend is upward.
You might ask: “Why aren't home prices plunging despite high mortgage rates and severe affordability issues?” The answer lies in the alarmingly low supply of homes on the market.
Despite the low inventory levels last year, home values dropped by 1% or more June through November 2022. The number of available homes went up from 1,453 in January to a peak of 4,806 in early August, a significant 231% increase. However, comparing it to the pre-COVID peak from 2017 to 2019, which averaged at 7,354 homes, there were still 2,548 fewer homes available. The decline in home values was completely attributed to the erosion of affordability caused by rising rates. It was not driven by a supply and demand issue, but rather a matter of home affordability.
In 2023, the year began with only 2,898 available homes. The inventory hit its lowest point in April at 2,025 homes and has only increased by 432 since then, currently standing at 2,457. At this time last year, there were 4,140 homes, a substantial 68% increase or an extra 1,683 available homes. In the three-year period before COVID, the average was 6,823 homes, which is 4,366 more or 178% higher than the current inventory.
Unlike the volatility seen in 2022, interest rates in 2023 have been relatively stable, fluctuating between 6.5% and 7.5% since the beginning of the year. Last year, the sudden spike in rates caught everyone off guard and dampened buyer demand. Now, buyers are getting accustomed to these rates and are aware that refinancing is an option if rates decrease in the future. Consequently, they are feeling more comfortable entering the market for the right property.
The current scenario of limited supply and stabilized mortgage rates has created an extremely competitive real estate market that strongly favors sellers during negotiations. For homes priced below $1.5 million, the market is highly competitive, with an Expected Market Time (the number of days it takes to sell all listings in San Diego County at the current buying pace) of less than 40 days. Homes priced at or near their Fair Market Value are receiving an overwhelming number of buyer showings and multiple offers within the first few weeks, and often within days.
The inventory is expected to reach its cyclical peak between July and August, leaving little time for it to grow. After reaching this peak, the inventory will gradually decrease throughout the remainder of the year. Consequently, the pressure and trend for monthly increases in home values will continue at a slow pace. San Diego County home values are on the rise. If you’re curious about the current value of your home, give me a call. I can provide you with a market analysis that will give you a clear picture of your home stands in today’s market.
Compass Military Division
Compass, the first nationwide brokerage to launch a dedicated military division, has opened its doors, and I am absolutely honored to announce that I am now an official member. This remarkable network brings together retired military agents, spouses of military member agents, and agents with extensive experience in VA transactions. Every single one of us has been carefully selected based on our in-depth knowledge of the military lifestyle and our commitment to guiding active and retired military members towards building wealth through real estate.
Supporting our military community has always been a deep-rooted passion of mine. Throughout my real estate career, I've had the incredible opportunity to serve over 44 military families in San Diego. And now, by joining forces with like-minded, highly skilled, and experienced agents from all corners of the country, my dedication to supporting our military is further fortified.
Curious about the areas we serve? Take a moment to explore our complete list. Whether you or someone you know in the military is relocating to or from San Diego or any other part of the country, rest assured that we have you covered.
Don't hesitate to reach out to me today to learn more about this thrilling new network. Together, we can make your real estate dreams a reality and ensure that our military members receive the unwavering support they deserve.
JULY 8TH - 16TH
San Diego Pride week is jam packed with events such as a 5K, block party, pool parties, parades and so much more. Funds raised through ticket sales support San Diego Pride’s community philanthropy which has distributed more than $2.5 million in advancement of its mission to foster pride, equality, and respect for all lesbian, gay, bisexual, and transgender communities locally, nationally, and globally. Click here for more information.
This is the city's best display of reggae music in the comfort of beautiful Waterfront Park. Don't miss amazing musicians, taco stands, craft cocktails and beers, and vendors. Click here for more information.
JULY 20TH - 23RD
Welcome the iconic Comic-Con back to San Diego for this annual gathering of fans, industry professionals, and celebrities, featuring a wide range of pop culture events, including panel discussions, exclusive previews, cosplay, and autograph signings. Click here for more information.
Lifestyle Tips & Tricks
What Does Move-In Ready Really Mean?
"You may need to adjust your mindset before walking into a house advertised as move-in ready. But what does "move-in ready" really mean? Depending on who’s talking, it could simply mean that all the appliances work. For others, it means a freshly renovated home that reflects popular trends and styles. Or you may want a house that requires zero work – if the paint colors don’t match your tastes, it’s not move-in ready."
2023's Top Outdoor Living Trends
"New products are enhancing the outdoor 'gathering story' - pizza ovens, fire pits, outdoor movies, games, scenes," according to a new study just published in May.
Four Location Factors to Consider For Real Estate Investments
When it comes to real estate investing, statistics can serve as a starting point - yet there's much more legwork to carry out when choosing the best spot.