2024 San Diego Real Estate Market Prediction

As we step into 2024, the real estate scene in San Diego continues to unfold in unexpected ways. The previous year, 2023, was remarkable for witnessing the highest interest rates in nearly a quarter-century. Surprisingly, these soaring rates, peaking near 8%, didn't dampen the San Diego market as they did elsewhere. Instead, a twist in the tale emerged with a decrease in listing inventory, sparking more buyer demand. Despite tougher affordability, property values in San Diego continued their upward trajectory.

A Dynamic Start to 2024

January 2024 mirrors the early days of last year: scarce homes for sale, interest rates stabilizing in the mid-6% range, and unyielding buyer demand. San Diego, arguably the most sought-after locale to call home, faces a perpetual imbalance between its allure and housing availability. This housing scarcity, especially at the start of 2024 with even fewer listings than last year, forecasts another fervent sellers' spring market. Should rates dip into the 5% range, we anticipate a surge in buyer participation, though some homeowners might hold back, reluctant to relinquish their 3% rates.

Key Predictions for 2024

1. Lower Rates, But Not Drastically: While a downward trend in interest rates is expected, they might hover in the 6% range, with a potential dip into the 5% as election season approaches.

2. Strong Demand: Buyers, acclimatized to higher rates and wary of further price escalations, are likely to remain active, unwilling to delay purchases.

3. Return to a Fierce Sellers' Market: The brief respite from ultra-competitive, no-contingency offers seen in late 2023 is likely to be short-lived. Expect the return of intense bidding wars, as pressure on buyers is sure to escalate.

4. Price Increase: The classic economic formula of high demand and limited supply naturally leads to rising prices in the San Diego real estate market. I have seen projections around an 11% increase in values.

 The Right Time to Act

In such a dynamic market, the role of real estate professionals becomes crucial. Buyers need astute, savvy agents to navigate and succeed in this competitive landscape. Sellers, on the other hand, require local experts: top-notch negotiators with deep market knowledge and exceptional marketing skills to maximize profits. 

Are you wondering when the best time to list your home will be to take advantage of the buyer demand? Are you a buyer who wants to be successful in  getting your offer accepted rather than spending 2024 in market frustration? Set up a quick 15 minute call with our team, so we can understand your unique needs, and hhelp guide you to San Diego Real Estate success. 

https://calendly.com/movetoencinitas/30min?month=2024-01

POND TEAM REAL ESTATE | COMPASS

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Discussion

#1 By Katie Pond at 1/11/2024 -1:16 PM

Ask us about our 90 Day Home Buying Challenge because the 1st quarter of 2024 is your opportunity zone.

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