San Diego is approaching the midpoint of the 2024 summer real estate market. While new real estate commission laws are on the horizon, it hasn’t taken any steam out of our local market. County-wide, home prices are up substantially from last spring! Prices have grown more than 10% overall with some neighborhoods seeing even greater year-over-year gains.
Tracking the market data for San Diego County, alongside the nationwide economic reports, allows me to provide a robust analysis of the current trends affecting San Diego sellers and buyers. Here’s what you need to know as we head into the second half of the summer real estate market.
The Federal Reserve Indicates Only One Rate Cut This Year
When the Federal Reserve (the Fed) met in June, they strongly signaled that we could expect to see only one rate cut before the end of the year. At the start of 2024, experts were predicting we’d see multiple rate cuts to the standard interest rate, but inflation has remained above the Fed’s target range throughout the first half of the year. Still, the economic reports at the June meeting were trending in the right direction and as recently as last week, we’re seeing both the jobs report and the unemployment rate showing positive signs that inflation is cooling down.
What a Rate Cut Means for San Diego Home Sellers
Rate cuts tend to have a positive effect for San Diego home sellers. While the rate cut is for the standard interest rate, not mortgage interest rates, the rates on home loans do tend to drop as a result which can help stimulate the local market and convince more buyers to renew their home search. Sellers of luxury homes in San Diego, whose target buyer may pay all cash for their next property, aren’t immune to the effects either. Rate cuts are tied to inflation and less inflation means an overall stronger economy and higher consumer confidence.
What a Rate Cut Means for San Diego Home Buyers
Prospective home buyers who need a loan to finance their property purchase will benefit the most from a rate cut and subsequent decrease in mortgage interest rates. Though if one rate cut and a slight downward trend in mortgage rates isn’t enough to tempt you into buying this summer or fall, I have an innovative strategy that has helped many of my buyers save money upfront on their property purchase. Called a rate buy-down, it’s an unbeatable strategy that can help you secure your San Diego dream home this year. Check out my recent blog post for more and then give me a call to discuss how I can position you to succeed in today’s market!
If you’ve been holding off on your San Diego home purchase or continued to stay in a home that doesn’t fit your lifestyle, contact me to learn how I can help you sell for more now and take advantage of today’s current market trends. I’m proud to be ranked in the top 0.1% of real estate agents in America and am the top agent in 92103—let me show you what I can do for you!
