In the last few years, the San Diego housing market witnessed a frenzied surge, but the current scenario is far from a standstill. The buyer traffic remains robust, presenting promising opportunities for San Diego home buyers. To better understand the market’s dynamics, let’s explore the ShowingTime Showing Index, a reliable measure of buyer activity trends over time.
Seasonality and Shifts in the Market:
Seasonality is a typical aspect of the real estate market. In the pre-pandemic years (shown in gray), buyer activity peaked in the first half of each year, during the spring homebuying season, and slowed down as the year progressed. The onset of the pandemic in March 2020 disrupted this pattern (shown in blue), ushering in what can be called the ‘unicorn’ years of housing (shown in pink). Mortgage rates hit record lows, and buyer demand soared, maintaining the seasonal trends but at significantly higher levels.
San Diego’s Housing Market in 2023:
Currently, the San Diego housing market is experiencing a shift from the peak ‘unicorn’ years. Buyer traffic has declined compared to the previous month, and it’s lower than the peak seen during those exceptional years. However, it’s important to note that this decline doesn’t indicate a drastic drop in demand but rather a gradual return toward more normal seasonality. As the ShowingTime report suggests:
“Showing traffic declined about 10% in May… This follows a typical seasonal pattern – disrupted by the pandemic but now beginning to return…”
Zooming in on May data from the last five years reveals the enduring strength of buyer demand, indicating that San Diego home buyers are still active and engaged in the market.
The Impact on San Diego Home Buyers:
For prospective San Diego home buyers, the current market presents a favorable landscape. Compared to May 2022, when higher mortgage rates triggered some hesitation (sticker shock), buyer activity is now more robust. Moreover, buyer activity today surpasses that of the last normal years, signifying the enduring attractiveness of the San Diego housing market.
Challenges and Opportunities:
While buyer demand remains strong, the limited supply of homes for sale is a significant constraint in the San Diego housing market. This scarcity has contributed to the market’s slight cooling, but demand persists, creating excellent opportunities for those seeking to buy a home in the region.
In summary, the San Diego housing market continues to exhibit resilience and vibrancy. San Diego home buyers should not overlook the active buyer traffic prevailing today. To capitalize on this opportune moment, it’s crucial to get your house on the market and seize the attention of eager buyers searching for their dream home. Take the first step towards success by contacting the Wesley Tyler Real Estate Group, your trusted experts in navigating this competitive and challenging market. Let our team’s experience and expertise guide you through every step of the process. Connect with us now to embark on your home-buying journey and find your perfect place in the flourishing San Diego housing market.
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