San Diego Housing Market Update

San Diego Housing Market Update

January 13th, 2023

Welcome to 2023! What is it going to be?

Although many of us are happy to see 2022 go, it was a good year for the most part, especially if you were a seller in March. 

San Diego Market Recap

And then the rates changed. 

We went from a fabulous SNL skit for all those sellers – buyers fighting, bargaining, and doing anything they could to get the house they wanted.

We saw sellers that were overjoyed their home was worth so much. But they quickly realized if they sold their home, they would have to pay even more for what they wanted. 

Buyers wanted to buy. However, it was challenging for San Diego buyers with our low inventory. And while rates were low, buyers were doing their best to capitalize. 

Kudos to the buyers who got a steal on their home in 2022 and to sellers who sold or refinanced. 

Then, the Fed met many times in 2022, and we saw soaring interest rates. 

We went from a fantastic seller’s market to an “okay” seller’s market. But it became a seller’s market where sellers had to make repairs, allow appraisals, and make contingencies. The buyers had to pay more, and rightfully so; they wanted more. 

Where We Are in the 2023 Housing Market

The market is a little different now, as we begin 2023.

We saw rates from 3% to 7%, and now we have settled into 6%. 

And although the Fed met recently, and rates went up half a percentage, it did not affect the mortgage market as much as recent hikes.  

Sellers. The market is still better than it was a year ago. We are still up about 10%. However, we are not up 40%, like in March. You will not get $100,000 over for your San Diego home anymore. In fact, sellers are selling for $100,000 under. 

And sellers, you have to put effort into your sale. Get some staging, purge your house, and make minor repairs. It doesn’t take much.

At the end of the day, it is what the market will bear. 

Buyers. Get a good agent to represent you. Hit your negotiations head-on.

Please get in touch with us if you have questions about the San Diego market or want a free home valuation.