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December is a month filled with traditions, gatherings with loved ones, and the opportunity to reflect on the journey you have traveled for the last 12 months. What have you learned? What are your dreams for the future? Do you feel you have found your place?
San Diego Real Estate
As we approach the end of 2023, it's a good time to reflect on the current state of the San Diego real estate market and look ahead to what we can expect in 2024.
Over the past two years, we have consistently reported that the inventory of available homes for purchase in San Diego has reached historic lows. To put this into perspective, let's consider the severity of this shortage and the factors contributing to it.
Between January and October, there were 22,118 fewer homes listed for sale in San Diego County compared to the approximate yearly average of 47,000 listed during the 3-year average before COVID (3-YABC). With mortgage rates remaining above 7%, it's clear that many homeowners are hesitant to list their properties for sale. This hesitation can be attributed to the fact that 85% of Californians have a mortgage rate of 5% or lower, 69% at 4% or lower, and 30% at 3% or lower.
In early November, we reached this year's peak inventory of 3,055 homes, and as of today, we have slightly fewer at 2,997 homes. To provide some context, the 3-YABC of 6,271 homes offered double the choices that buyers have today. As we enter the holiday market, we anticipate a typical decline in inventory as unsuccessful sellers withdraw their listings to focus on family and holiday celebrations. Forecasts indicate that the addition of new homes for sale will continue to be limited in 2024 until interest rates drop below 6%.
In November, buyer demand, measured by the number of new pending sales within the last 30 days, hit a 10-year low at 1,338, representing an 89% decrease from the 3-YABC of 2,553 pending sales.
See graph depicting inventory and demand throughout the year
The combination of low supply and low demand has resulted in a more balanced market, where both buyers and sellers have negotiating power. Homes that are priced right in desirable areas still attract buyers, albeit not as many as before.
One thing is certain—change is inevitable. While the market has experienced challenges this year, it's only a matter of time before interest rates drop below 6%, leading to positive movement in supply, demand, seller participation, and home prices. Stay tuned for our year-end wrap-up and annual market forecast in the January newsletter. If you have specific questions about your neighborhood or home, please don't hesitate to call me at 619-890-2877.
Wishing you a happy and safe holiday season!
Featured Listing
North Park
3373-3379 1/2 Herman Ave
8 Bed | 6 Bath |. 3912 Sqft. | $2,900,000
Welcome to this beautifully updated, single-story home in San Diego’s Otay Mesa West neighborhood.
Behind the automatic gate and past the mature landscape, you’ll find an inviting lanai that is a perfect multi-purpose space, extending both the interior and exterior living space. Step inside the home and the tastefully updated interior that is filled with natural light is immediately evident. The thoughtfully chosen finishes like luxury vinyl plank flooring, tall baseboards, custom paint, and new light fixtures add elegance to every corner of the home. The fully updated kitchen is a chef's dream, boasting quartz countertops, a kitchen island with a waterfall edge, rich-colored shaker cabinets with substantial storage, and stainless steel appliances. The open-concept design creates a seamless flow throughout the main living areas. Retreat to the primary bedroom with dual closets, remodeled ensuite bathroom, and direct access to the back patio. Down the hallway from the primary bedroom are an additional two bedrooms served by a remodeled hallway bathroom.
As you make your way outside, you'll discover a private low-maintenance backyard, complete with a beautiful pergola making it a perfect place to relax and unwind to enjoy the idyllic San Diego weather year-round. Whether you're hosting a barbecue or simply savoring a morning cup of coffee, this outdoor space is sure to become a favorite retreat. The single-car garage has a separate entrance off the lanai and is wired with a 240v electric car charger.
Otay Mesa West, in the heart of South Bay, is conveniently located close to the US-Mexico border making it a gateway to international trade and business plus easy freeway access makes coastal Imperial Beach and Coronado just minutes away. Diverse cultures, traditions, annual festivals, and culinary delights converge in this area along with adorned parks, trails, and recreational areas creating a welcoming atmosphere and a wonderful place to call home.
Call me at 619.890.2877 to schedule a private tour today!
Recently Sold
Grateful for the opportunity to assist an amazing client with the sale of her stunning San Marcos home! Our journey began in May when a past client and mutual friend referred her to us, and we are thanking our lucky stars for the connection. We crafted a 5-month plan to help her part ways with her beloved home of 33 years, guiding her through every step of the process. From editing personal belongings for marketing to tackling unexpected challenges like a leak and mold remediation, we were there every step of the way. Utilizing Compass Concierge, we managed the repair project to alleviate any additional stress, ensuring a smooth and successful sale. Our client's grace and humor in handling every challenge made the experience truly memorable. We are incredibly grateful for clients like her and for our advocates who connect us with such wonderful people. Thank you for trusting us with your real estate journey!
San Marcos
430 Silver Shadow Dr
3 Bed | 3 Bath | 1,862 Sqft | $1,050,000
Local Happenings
ALL MONTH LONG
Outdoor Ice Skating
Viejas Outlet Center Ice Rink
Rady Children's Rink Liberty Station
Coronado Skating by the Sea
Lake House Winter Wonderland San Marcos
Ice Skating on the Farm in Julian
ALL MONTH LONG
San Diego Botanic Garden Lightscape
Featuring exciting new installations along with returning fan favorites, this one-mile loop in Encinitas has been reimagined to surprise and delight visitors. Merging nature and art, the Garden will come to life at night for all to enjoy.
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Noel Wheeler
REALTOR
619-890-2877
DRE#01373389
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