San Diego Real Estate Shocker: Inventory UP 40% – What It Means For You!
San Diego Real Estate Shocker: Inventory UP 40% – What It Means For You!
Welcome to real estate game time. The San Diego market has entered the summer throws, and the data is presenting a dramatic picture—one that demands immediate strategy adjustments from both buyers and sellers.
According to our latest market analysis, overall inventory is up a staggering 40.7% compared to this time last year. For sellers, this means more competition. For buyers, this translates to crucial breathing room and significant leverage.
As The GreenHouse Group, we’re here to give you the facts, but more importantly, to tell you exactly what this recalibration means for your next move.
Inventory Up, Leverage Shifts: Where Deals Are Made
1. Pricing and Presentation are Paramount
With inventory climbing, sellers must prioritize impeccable pricing and presentation. While we are seeing a slight drop in median prices (down about 2% from the peak), the key takeaway is that the market is holding price points rather than surging. This shift means that during the transaction, flexibility is required, as automatic high appraisals are no longer guaranteed.
2. The Real Buyer Leverage is in Terms
Buyers who believe plummeting prices will grant them an easy win are mistaken. The real leverage point is in the art of negotiation. Deals are made on terms and only corroborated by price. Today’s buyers are securing wins through credits, repairs, and closing cost assistance, rather than simply low-balling the initial price.
3. Days on Market (DOM) Offers Prudence, Not Panic
The average Days on Market has increased by 23%—from 26 days to 32 days. This is great news for buyers. It means you no longer have to make panic offers or sprint to catch a moving train. Buyers can now proceed with more prudence and diligence, utilizing the full inspection and appraisal periods to ensure a sound investment. Sellers, this confirms that an impeccable initial strategy is more critical than ever.
The Hidden Crisis: Attached Homes and HOA Bombshells
The most dramatic spike in the market is found in attached homes (condos and townhomes), where inventory has surged by 61%. This is no coincidence; this segment is facing significant underwriting challenges that are leading to increased cancellations.
The Lending Gauntlet
In response to building safety issues nationwide, Fannie Mae and Freddie Mac have implemented a strict new condo questionnaire. HOAs are now hustling to meet mandated standards, including five-year inspection requirements. This process is revealing underlying issues that make underwriters pause, and deals are blowing up over findings such as structural deficiencies.
Surging HOA Fees and Assessments
To fund these necessary repairs and new insurance mandates (which have tripled in some cases), HOAs are raising dues—often one, two, or even four times over a 24-month period.
The ultimate deal-killer is the Special Assessment. A buyer might enter contract with a comfortable HOA payment, only to be hit with a mandatory $10,000 special assessment during escrow. A well-represented buyer will demand the seller cover this unexpected cost, creating an impass and killing the transaction.
Your Next Move: Hire a Strategist, Not a Salesperson
The San Diego market is not “tanking”—it is recalibrating.
For both buyers and sellers, success is no longer about instinct; it’s about preemptive planning. You need a team that can see several moves down the chessboard, identifying the “snakes in the proverbial grass”—be it a complex HOA document, a potential appraisal gap, or an unexpected special assessment.
Whether you’re selling and need the ultimate strategy to stand out in a high-inventory market, or you’re buying and need a partner to secure the best terms, your greatest investment is in the team you hire.
🤝 Partner with The GreenHouse Group
We provide the resources and strategies to help you navigate this complex market with confidence.
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