San Diego County, which encompasses several neighborhoods catering to different lifestyles and buyers, is famous for its excellent summer weather and nature views. Although this county and the surrounding area are being impacted by inflation and rising interest rates, buyers and sellers shouldn’t expect too much slowdown within the robust market in 2023. To better understand the forecast for the next year, here’s what you need to know about the current San Diego County real estate market.
Looking at the stats
- The median sales price for properties in San Diego County is $915,000, an increase of 7.2% from September 2021
- New listings have decreased by 22.9% since this time last year
- Properties spend a median of 32 days on the market (versus 22 days year-to-date)
- San Diego County has an inventory supply of 1.8 months
San Diego County’s housing market
Homes in the best neighborhoods in San Diego continue to fetch top dollar. When looking for homes in La Jolla or Carmel Valley, buyers must continue to put their best offers forward. The silver lining is that homes in these areas appreciate greatly, so those looking to buy can count on increased home values in the long term.
What to expect in 2023
San Diego luxury homes will remain popular, and buyers looking for neighborhoods to raise families or work may find it challenging to buy in the upcoming year. Although the housing market may cool, the leading cause of its cooling is increasing mortgage rates. Buyers should expect higher rates into 2023, while sellers can expect to benefit from market conditions leaning in their favor for the foreseeable future.
What to know as a 2023 buyer
Additionally, the cratering months of supply metric reflects a seriously depleted inventory that is unlikely to replenish by early next year. Buyers looking for homes in 2023 will have difficulty finding dream properties that check all their boxes.
When searching for properties next year, it will be essential to act quickly as a buyer. Due to low supply, we can expect houses on the market to continue selling fast. At the same time, higher interest rates and inflation are working to slow the housing market. So even though prices will remain high, once you settle on a shortlist of houses, you can avoid a bidding war by zeroing in on under-the-radar homes (for example, a quality agent can identify houses for sale but not yet publicly listed).
What to know as a 2023 seller
Sellers should keep their eye on the effects of high interest rates and inflation on buying power. Sellers may notice demand decrease next year as the market prices out buyers. Overall, sellers will have plenty of time to plan their listings and little pressure to accept low offers.
What to know as a 2023 investor
Investors looking to break into the rental scene within the next year will face the same obstacles as buyers in 2023. Low inventory and high demand will make it challenging to find a property; however, if you find something, you’ll benefit from increased rental rates, plenty of demand, and significant annual appreciation.
Ready to buy or sell in San Diego County?
*Header photo courtesy of Shutterstock