March 2021 - San Diego Real Estate Market Update
SAN DIEGO REAL ESTATE MARKET UPDATE: MARCH 2021
Reading predictions about the real estate market in the current economic and global political climate feels like a watching a heated tennis match that gives you whiplash. Does it seem like the market is over-inflated and primed for a correction? Maybe. Does it also seem like the likelihood of decreased demand and increased inventory shifting market factors majorly is relatively slim? Yes.
No one can tell you where we’re going - the truth is no one knows - but we can tell you where we’ve been and where we’re at right now. Every single one of our listings so far this year has been, by mutual agreement with the sellers, intentionally priced on the higher end of its estimated value. Each of those listings has fetched multiple offers and on each one we have gotten well above list price. San Diego County List to Sell price ratio is on average 102.4% - in our experience that ratio is quite a bit higher when a home is desirable and marketed well.
IF YOU’RE A HOMEBUYER
Come to the table prepared with the knowledge that it is extremely difficult to compete in this market. You will almost definitely be involved in a bidding war if you are looking to buy in the next year or so. You will most likely need to pay quite a bit more than the asking price on a home. If you are using a mortgage to purchase a home, it is likely that you will be asked to pay in cash for any potential difference between the sales price and appraised value of that home. We are working with our buyers to craft creative strategies to find and win out on homes in this fast paced market.
IF YOU’RE A HOMEOWNER
My best advice to you if you intend to stay in your home for the long term is to prepare for the worst and expect the best. By now, most everyone has refinanced their mortgage to leverage rock-bottom interest rates and increased equity to keep payments manageable in the event that we do see home prices decrease in the future. If you’re able to, now is a great time to renovate. Invest in features that make the home comfortable for you, as well as making it appealing to eventual buyers - features that focus on working, schooling, dining and exercising from home are very popular as well as smart home and healthy home features.
Most importantly, monitor your home’s value closely and keep informed of market changes in order to keep making the best decisions possible regarding your housing and financial situation.
We provide several tools to help with this - enroll in HomeBot to monitor your home value and mortgage details and explore how you can best put your equity to good use. If you ever desire a customized, down-to-the-moment home evaluation performed by a professional, contact me any time for a personalized report. And of course, we send this info via newsletter each month to keep you apprised of the market and help you to stay on top of breaking news and shifts in the market.
Lastly - a message to homeowners on the fence about selling... I always say, it’s best to sell when you want to, not when you have to. We don’t know what tomorrow holds but we know that home values today are soaring and it’s a great time to get an incredible sales price for your home. If you plan to move out of state, downsize or make a move in the short-to-medium term, now may be the right time for you to strike while the iron is hot.
As always, we will be here to continue to provide you with updates about the housing market and answer any and all of your questions. Feel free to reach out to us anytime.
HOMEOWNER RESOURCES:
FUTURE HOME BUYER RESOURCES: