Digging deeper: Unraveling San Diego’s real estate market.
Are you curious about the current state of the San Diego real estate market? Today, we’ll explore the difference between lagging and leading indicators and delve into key statistics that shed light on the demand, inventory, and hot areas in the region. Let’s get started!
Lagging indicators refer to past data, such as the number of homes sold in previous months. While they offer insights into historical trends, they may not provide an accurate picture of the present market conditions. On the other hand, leading indicators focus on current demand, specifically the number of properties pending in the current market. These leading indicators offer a more real-time view of buyer activity and can help predict future trends.
In June 2023, the San Diego real estate market saw 2,078 homes sold. While this figure may seem low compared to previous years (20-30% fewer sales than in 2022 and 2021), it’s crucial to consider leading indicators to understand the demand dynamics better.
Demand in the market is influenced by factors such as interest rates and affordability. Currently, many potential buyers are hesitant to commit to high interest rates of 6.5% to 7%. However, as interest rates decrease to around 5%, we can expect to see a surge in demand and heightened buyer activity.
“Understanding the demand indicators and market trends is crucial for making informed decisions.”
The inventory of available homes also plays a significant role in the market’s dynamics. In June 2022, there were 4,668 homes on the market, while in June 2023, this number dropped to 2,871. Many homeowners are reluctant to sell as they are locked into favorable interest rates of 4% or less, contributing to the limited inventory.
In terms of distressed sales, the market currently reports zero foreclosures and only 0.3% in short sales, indicating stability and healthy market conditions.
If you’re curious about the hottest areas in San Diego County, here are the top three for June 2023:
- Chula Vista: 115 units sold, Median Price - $750,000
- Condado: 132 units sold, Median Price - $747,000
- Oceanside: 157 units sold, Median Price - $799,000
While the market has seen a decline in home sales compared to previous years, understanding the demand indicators and market trends is crucial for making informed decisions. As interest rates and affordability factors change, we can expect shifts in buyer activity and inventory levels. If you have any questions about the state of the market or real estate in general, please don’t hesitate to reach out. Our team is here to guide you in making the right decisions in today’s ever-changing market.