Is It A Good Time To Sell A House In San Diego?
So, you’ve got a house in San Diego, and it’s great, very comfortable, with 5 rooms, 3 baths, amazing kitchen, a patio, and a pool. But you’ve been thinking of moving on, maybe flipping it for something better. Question is, when is it a good time to sell?
For home sellers who already have a home to sell, here’s good news: according to the California Association of Realtors (CAR), values of homes increased above the past year. As found in CoreLogic’s data, home prices last July in San Diego County blew past previous records to hit an unprecedented $634,000, which is a 9% price increase over the year before. Based on Zillow’s data, the prices of homes grew a huge 6.2 percent from 2017. Though the worth of homes slowed last year with a 1.2 percent growth, these home values are predicted to continuously grow. A projected 1.5 percent increase, though slow than the past years, is still a win for homeowners as the value steadily grows despite the pandemic. Some say inventory is still low, but homes on the market are selling extremely fast.
Before selling, you might want to take a look at how the market in the local area is shaping up because market conditions change all the time. It can really be confusing sometimes, so here are somethings that you might want to consider.
Here are 5 things to consider knowing if it is a good time to sell a house in San Diego
Employment Rates and Wages
In the San Diego area, there is a marked rise in employment this year, at around 0.7% from 2019, that’s 1.5 million jobs. But a little more glaring is the plummeting unemployment rate, which is 22% lower than the national average and is 29% lower than the California average. This clearly ties into the 10.2% year-over-year rise in single-family home sales as recently as August of this year.
So, remember that when employment rates are up, and unemployment is down, the market will most likely be flush of prospective new home buyers ready to spend in order to buy their dream house, that’s even despite high average prices.
Something that is also closely related to employment and might also be affecting the demand in the area are wages. While not as high as the 3% the state of California is experiencing, San Diego county wages are up by 2.2% compared to the closest comparable rates from 2014-15.
One more thing that really feeds into higher demand for buyers are mortgage rates. Like the unemployment rate, the lower the mortgage rates the better it is for would-be buyers, that’ll almost always lead to higher demand. The Mortgage rates are at an all-time low right now, and they’re still on the decline. This simply means that more potential buyers are no longer baulking at buying a house because of the sticker price. They can now take that hit because of low mortgages.
Buying a house in San Diego is also seasonal, with most sellers getting more for their listings during the period from the latter half of May through to June, and even creeping up into July sometimes. These are months people agree are better to physically move a family. But, much like average property values, with more people being gainfully employed, and flushed with cash, plus the historically low mortgages, more people may be willing to buy your house even if the fall season is beginning to roll in.
Thanksgiving or Christmas are times that you would usually hear are not a good period to put your home on the market. While it may be true to some other parts of the US, it is not always the case for San Diego - we are still closing deals during these times. Although, the one thing that we have observed during the week of Thanksgiving and Christmas is that home showing is a bit slower than regular times.
With this in mind, fret not because serious home buyers are looking for their future home all the time. Many home buyers are not prevented by holidays like these to put an offer to a home they like. In actuality, there may be less competition on a home during these times.
You really want to consider all these to know when for your specific situation is the best time to sell a house in San Diego. Of course, you need to check San Diego housing marketing data regularly to keep up to date on the latest trends and market fluctuations.
As a seller you need to make sure that you get the most out of selling your home, and as we’ve seen earlier, rising home prices are not the be all and end all when it comes to knowing when to sell a house in San Diego. The access to cash will speak a lot to how high the demand is for houses like yours, that’ll actually be working in your favor if you can take advantage of when buyers are willing and able to spend the most amount of money in exchange for your property. What’s great though is that in general, the San Diego area has historically been in the top 10% nationally in terms of real estate appreciation. In the 2nd quarter of this year alone, the San Diego Area enjoyed a real estate appreciation rate of 1.22%, if this continues that’ll amount to an annual rate of around 4.97%, still one of the highest on the country. Meaning that you would need to worry less about the price of your house depreciating, so you can just focus on when buyers have the cash to spend.
Mortgage rates are also in your favor right now, and that’ll help you in making sure that buyers will still be willing to buy, while you get to enjoy higher list prices.
So, when’s the best time to sell in San Diego? Well, you’ve got to find the best mix of market factors to make the sale of your beloved house all the more worthwhile. If all these things are still confusing to you, do not fret, I would be happy to schedule a complimentary consultation to provide market expertise, help you make a sound decision as to when the best time to sell a house in San Diego based on your specific needs.