San Diego Real Estate Market Update: October 2024
San Diego Real Estate Market Update: October 2024
As we move deeper into October 2024, San Diego’s real estate market is seeing some key shifts that could provide opportunities for both buyers and sellers. Traditionally, this time of year signals a slowdown as we approach the end of the year and the holiday season. However, several significant factors, including rising inventory, flatlining prices, and new lending programs, suggest that this could be an excellent time to make a move in the market—whether you’re looking to buy your first home, downsize, or invest.
Inventory on the Rise
One of the most notable changes in the San Diego market is the sharp increase in housing inventory. Listings are up by 51%, which is a significant jump compared to previous months. More homes are hitting the market, and they’re staying listed for longer. This is a stark contrast to the fast-paced, competitive market we’ve seen over the past few years.
Days on market have increased by 100%, giving buyers more time to weigh their options and negotiate better deals. This rise in inventory comes after a prolonged period of low housing supply, which had driven home prices upward despite higher interest rates. With more homes available and staying on the market longer, it’s creating a window of opportunity for buyers who had been priced out or faced stiff competition in recent years.
Prices Finally Flatlining
For many months, San Diego’s home prices defied gravity, continuing to rise even as higher interest rates cooled down demand. However, as of October, prices have finally flattened. This stabilization is noteworthy, as it marks the first time in a long while that San Diego hasn’t seen price hikes despite changes in the broader economic landscape. The flattening prices can be attributed to the growing inventory, which has somewhat balanced out supply and demand.
This could be good news for buyers who were waiting for prices to come down or at least stabilize. If you’ve been holding off on purchasing a home due to rapidly increasing prices, this might be the moment you’ve been waiting for.
Loan Programs for Buyers
The cooling market has led lenders to roll out more creative financing options, particularly for self-employed individuals and first-time buyers. Two key programs stand out: loans for the self-employed with less than one year of business and 100% financing options.
Traditionally, self-employed buyers have faced more stringent requirements, often needing to show at least two years of income to qualify for a loan. However, new programs now allow buyers with less than one year of self-employment to qualify, which is a game-changer for those in San Diego’s entrepreneurial and freelance-heavy economy.
Additionally, 100% financing programs, which allow buyers to purchase homes with no money down, are making a comeback. While these loans aren’t new, what’s different is the flexibility and attractiveness of the terms. They often involve grants or silent second mortgages, meaning buyers may not need to repay the second loan until they sell the home, making homeownership more accessible.
Conclusion
The San Diego real estate market is in an interesting phase. With inventory rising, prices stabilizing, and new financing options available, buyers have more room to maneuver. For sellers, the market is still holding steady, but it may be time to act before further changes occur in 2025. If you’re considering making a move, whether buying or selling, this could be the moment to do so. Stay informed, act strategically, and watch how these trends unfold in the coming months.