San Diego Real Estate Market Trends 2024: Insights & Forecasts

Like everyone else in the country, San Diego home buyers and sellers have a burning question: What’s going to happen to the real estate market in 2024? While we cannot predict where it’s headed with certainty, we can tell you where it is now and where we think it'll go throughout the remainder of the year.

Current San Diego Real Estate Market Trends

Competition

If you live in the San Diego area, you already know the market is competitive. But just how competitive is it? On average, homes last an average of 15 days on the market and receive an average of six offers.

Cost

Currently, the median home sale price in San Diego clocks in at $921,753. That’s an 8.4% increase from last year. On top of that, many homes are selling as much as 5% above their listing prices. And to stay competitive, many buyers are waiving contingencies.

Inventory

With under 3,000 homes on the market, inventory remains low. However, it has increased by 13.3% since April. This shortage is driving up prices and making the market far more competitive.

Interest Rates

Current interest rates for a fixed-rate 30-year mortgage are at over 7%. While still relatively low from a historical perspective, rates have doubled since 2022, impacting buyer and seller behavior.

More specifically, many buyers are reluctant to purchase due to higher monthly mortgage rates and rising home prices. And would-be sellers are choosing to stay put and keep their homes off the market. Why? Because they do not want to take on a higher interest rate.

Where’s the San Diego Market Headed?

To understand where the market may be headed, you must consider the following:

The Fed and Interest Rates

The Federal Reserve does not set mortgage rates. However, mortgage lenders do take cues from them. And while the Fed has hinted that rate cuts are coming, experts suggest there isn’t enough confidence that inflation will drop toward the 2% target. Our best guess? Mortgage rates will not see any meaningful drops in the remainder of 2024.

Inventory

With current homeowners enjoying lower interest rates (secured before 2022), we suspect many will choose to remain in their homes rather than sell. Because of this, we believe inventory will remain relatively low and competition high.

Affordability

Due to a combination of limited inventory, higher interest rates, and elevated home prices, we suspect home prices will stay up. Because of this, buyers may need to adjust their expectations—either buy less house or explore alternative financing options. Or, alternatively, continue to rent or pay down their current mortgages to see what happens through the remainder of 2024.

Seller Opportunities

High interest rates may discourage some would-be sellers from listing their homes. However, others looking to downsize or relocate out of state and into more affordable markets are at an advantage. It's a seller's market, and sellers can certainly command higher prices.

Buyer Opportunities

Highly coveted neighborhoods may come with premium price tags. However, San Diego still offers a wide range of desirable neighborhoods at attractive price points. Buyers willing to explore different areas will find hidden gems that provide excellent value for the money.

Our experienced realtors have in-depth knowledge of the San Diego market and can help you find neighborhoods that align with your budget and preferences.

Competitive Markets Demand Competitive Realtors

Thinking about buying in San Diego? Then you will need a trusted ally by your side.The Selby Team understands the local market and can give you the insight and guidance you need to stay competitive while making informed decisions that fit your lifestyle and goals. Connect with us today to get started!