San Diego, California’s real estate market, known for its competitive nature, has shown signs of cooling down. In the real estate industry, the term “cooling down” refers to a market that is shifting toward a more balanced state between home buyers and sellers, or even leaning toward a buyer’s market. Here’s a simplified breakdown of the current situation:
1. Decline in Home Prices
The median home price in San Diego dropped for the first time this year in August at $889,500. This marks a 1.2% decrease from its previous month.
2. Sales Activity
We saw 2,439 home sales, an increase of 2.4% in August compared to the same time last year. However, it’s important to note that this is still one of the lowest sales figures for an August since 1988, indicating a cooling market.
3. Price Variations
Single-family homes have seen a decline, with the median price dropping below the $1 million mark to $997,250. On the other hand, condos and townhomes have experienced a price rise, with a median sale price increase of 6.7% in a month.
4. Interest Rates Impact
The average 30-year fixed-rate mortgage has decreased in late August. The reduction could potentially save buyers around $40,000 over the lifespan of a 30-year loan.
Source: The San Diego Union Tribune
Tips for Home Buyers and Sellers
Navigating a cooling real estate market requires strategic planning and informed decisions. Here are some tips to help you make the most of the current conditions:
Home Buyers
▪️ Expand your search – With more homes on the market, take the time to explore a variety of neighborhoods. This can help you find the right home that fits your needs.
▪️ Secure Financing – Lock in a mortgage rate early to secure your budget. A real estate agent can recommend trusted mortgage brokers to guide you through financing options.
▪️ Negotiate Wisely – In a cooling market, sellers may be more open to negotiations. A real estate agent can be invaluable in helping you understand market conditions and craft strong offers that appeal to sellers.
▪️ Work with a real estate agent – A skilled agent provides insights into market trends, access to exclusive listings, and expert negotiation skills to help you secure the best deal.
Home Sellers
▪️ Price competitively – Research recent sales in your area to set a realistic price. A real estate agent can provide a comprehensive market analysis to ensure your home is competitively priced.
▪️ Enhance curb appeal – Simple upgrades like fresh paint and landscaping can make your home more inviting. An agent can advise on the best improvements for your specific market.
▪️ Be flexible – Remain open to negotiations and consider reasonable offers. Your agent can help you evaluate offers and decide on the best course of action.
▪️ Market effectively – Utilize both online and offline marketing strategies. A real estate agent has access to professional photographers and digital marketing tools to increase your home’s exposure.
▪️ Work with a real estate agent – An experienced agent provides market insights, staging advice, and expert negotiation skills, increasing your chances of a successful sale in a cooling market.
I, Shirin Rezania Ramos, am here to offer you expert real estate guidance. Whether you’re strategizing in this cooling market or any other market condition, I can provide the insights and support you need to make informed decisions. Reach out today, and let’s start on your home buying or selling journey together! Call me at 858-345-0685.
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Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379
