San Diego buyer and seller opportunities and risks

Are we headed for a slowdown in the last half of 2023 in San Diego home sales and prices?

Who knows! What I know is that there are opportunities, challenges, and risks in this market. I learned two lessons from the 2022 market., one for buyers and one for sellers.
 

Since you can't time the market, make the best decision with today's options.
 

Buyers- if there is a slowdown in the real estate market, take advantage of the lack of competing buyers and buy a home.
 

Prices are expected to be stable with a modest gain this year, and mortgage rates are predicted to drop to 5.5%. So buy sooner rather than later because if you wait for mortgage rates to drop, you'll pay a higher purchase price because of increased buyer demand.
 

Sellers- if you're waiting for prices to increase even more, you might miss the boat. I'd like for you to consider selling now.
 

RISK - the lack of inventory keeps prices stable, but if more homes come on the market or monthly payments increase, the buyer demand could drop.
 

An example of affordability mortgage rates is currently 7%. At some point, the payments become unaffordable. For example, if you buy a home for $1.2 mil with a $1 mil loan at 7%, the mortgage is $6653, the property tax is $1200/mo, with insurance is $8K/mo., with $200K down. This buyer has to make approximately $250K/year to afford this home.
 

If you'd like to know REALISTICALLY what you'll make in today's market, please call or text me at 619-846-1244 to discuss.

The reason not to buy is if you do not plan to own more than 2 years. With that short-term perspective, it might make more sense to rent. 

The reasons to not sell and keep your home are if you don't have the money for a new home or can't qualify for a loan. There could be other options like equity lines, reverse mortgages, etc. 

You can find out how much your home has appreciated this year.