Blog > May Market Watch: What's hot, what's not, and what Mom would love!

May Market Watch: What's hot, what's not, and what Mom would love!

by Jim & Jennie

Welcome to our May edition of the San Diego Edit! As Spring reaches its peak, the local market is buzzing with energy. While some houses sit longer on the market due to increased inventory, high interest rates, and overpriced marketing strategies... others are still selling after a single weekend on the market. What makes a property stick out and sell faster? Keep reading and we will tell you all about it!

May also brings several meaningful moments beyond our business in real estate. It's the month to celebrate graduates walking the stage and collecting their degree (just like Jim's eldest, Kyle, did last month), a month to honor the Mothers in our lives who have shaped and supported us, and a month to remember the Veterans who have made the ultimate sacrifice for our freedom. Beyond the holidays, there's tons to do this beautiful time of year. We hope you're up to something fun!

So let’s dive into it!

In this month's newsletter you'll find...

Our Current Inventory — Check out our most recent listings & sales activity.
Interest Rate Buydowns — A financial hack that could save you $100s/mo on your mortgage.
Earthquakes: How To Prepare — It's not for "if" the next one comes but "when" it comes, you're prepared.
How Much Is Your Home Worth? — Discussing the important factors that effect home values.
San Diego Spring Activities — Must-try taco spots, Memorial Day events, & Wonderfront FREE Music Festival!
Holidays & Happenings — Beyond our county that may affect & or include you!
Local Market Statistics — San Diego's market based on last month's statistics.
Punny I'm Home — Our joke section... Though we're the first to admit we're not funny.

Recent Activity

Interest Rate Buydowns

An interest rate buydown is a financing option where a borrower pays an upfront fee to reduce the interest rate on their mortgage for a certain period (temporary buydown) or for the life of the loan (permanent buydown). Both make for lower monthly payments, making homeownership more affordable. Buydowns can be structured in different ways. We often see temporary buydowns such as a "3-2-1" or a "2-1" buydown, where the interest rate starts at the lowest rate and then gradually increases to the original fixed rate in the first 2-3 years (ex: 4.25% interest the first year, 5.25% the second, and 6.25% for the third and remaining years of the loan). This strategy can be especially useful in high-rate environments or when a borrower expects their income to increase in the near future. The permanent buydown is a great long-term option if you want to lock your loan in for a certain amount at the entire length of the loan. It's important to discuss all options when speaking with your lender. The best part is that the borrower doesn't always have to pay for these financial advantages.

In a market like today's, there's a good chance we can negotiate the seller to pay for your buydown!

Earthquakes: How To Prepare

Did you feel the earthquake we had last month? It was the first shake most of us have felt in a long time, so we wanted to revisit how to prepare for earthquakes in the future! After all, we live in California where there is tons of seismic activity, some that we feel and some that we don't. To protect us, California has some of the strictest building codes in the U.S. designed to improve earthquake resilience. In addition to building code, it's important that you stay prepared with these simple, yet important, preventative steps:

Secure your space. Identify other hazards, and secure heavy or breakable items like bookshelves, televisions, and water heaters (must be double strapped).
Plan for a safe exit. Create an emergency plan for your household. Decide how you’ll communicate with loved ones and where you’ll reunite if separated.
Organize emergency supplies. Store water, non-perishable food, first aid supplies, flashlights, batteries, and other essentials in accessible locations.
Prepare and store important files. Make them accessible - easy to grab and go.
Download emergency apps. Others recommend MyShake App or ShakeReadySD.

A few minutes of preparation now can make all the difference when the next one hits.

How Much Is Your Home Worth?

How much is your home worth today? Is it what Zillow says? Is it the same amount your neighbor sold their home for in the summer of last year? Is it 30% more than the value it was in 2022? None of these are correct!!!

Your home is worth what a buyer will pay for it today. Therefore, we must take into account all of the factors of today's market affecting our buyers in San Diego. We often discuss factors like: inventory, condition, location, and interest rates. All things that Zillow cannot and will not factor into your Zestimate!

Inventory: A big factor in price is the amount of inventory buyers have to choose from. Did you know that there is two times the amount of inventory today in comparison to the amount we saw in the peak of 2022? It's true! Today's buyers have twice the amount of options to shop from than they did in 2022, and probably half the amount of buyers to compete against due to high interest rates. This leads us to an important conversation of how we can work to make your home stand out amongst the crowd of listings for sale.

Condition: What makes a home sell faster, with multiple offers that drive the price up? A home that is turn-key, well-maintained, and updated. Condition definitely drives buyers to compete for a home, which typically ends up in multiple offers and a higher purchase price. The house that needs all the work done to it, has neglected maintenance, and has weird smells coming from it... Yeah that one is going to sit. There is one exception to this rule of condition... If a home is in a prime location, sometimes the condition doesn't matter if a buyer can see the potential in the house's renovated state.

Location: The homes that we are still seeing sell quickly, for over-asking prices are those with prime location in a high-demand neighborhood. These are the homes that stick out in the crowd of houses that are for sale. People are driven to lifestyle. So if your home welcomes a unique type of lifestyle, then we assume it will still sell quickly despite slow market trends. It's helpful to know if your home is in one of these high-demand micro markets, and if you're curious you can always ask us!

Interest Rates: Another major factor is the interest rate. The higher the rates are, the less buyers can afford to borrow money to buy homes. Right now, rates are still sitting in the high 6%s, affecting every single buyer's purchasing power and pushing some buyers out of the market altogether. It's difficult for most people in our county to buy real estate right now, especially those who are getting into the market for the first time. When rates are high and climbing, prices are negatively affected making them stagnant or drop some.

Always remember that your home might be down in value right now, but it's normal for any kind of market to have ups and downs. If you have a long-term mindset, real estate in San Diego always wins. We don't know where the market will go from here, but we promise to keep you updated with any shift that we see.

San Diego Spring Activities

SD's Must-Try Taco Shops Memorial Day Celebrations Free Wonderfront Music & Arts Festival

Visit Website See 6 Links Below Visit Website

1. Fort Rosecrans Memorial Day 2. Mt. Soledad's Memorial Day Ceremony 3. Liberty Station, From Barracks to Brews

4. Valley Center Stampede Rodeo & Memorial Festival 5. Vista Strawberry Festival 6. El Cajon, Music on Main

The days are getting longer and the sun is shining brighter in San Diego. It's time to get outside and enjoy Spring while we still have it! This month we are highlighting some of SD's best taco spots for the foodies, Memorial Day celebrations happening all around the county, and an incredible FREE music & arts festival happening at Seaport Village! What are you most interested in? Click on the photos or the links above them to visit the respective attraction's website.

Holidays & Happenings

May 5th: Cinco de Mayo

May 11th: Mother's Day

May 26th: Memorial Day

Market Update

This data is pulled from last month and based on all residential sales in San Diego County.

Median Sales Price: $910,000

A slight decrease from March.

New Listings: 3,337

That's how many homes were added to the market last month.

Active Listings: 5,659

More available homes, more options for buyers.

Pending Sales: 1,998

Homes are coming onto the market quicker than the amount of homes we have go pending on the market.

Closed Sales: 2,118

Most closings we've seen this year!

Average Days on Market: 27

Two days less than last months stats.

Median % of Asking Price Received: 100

Properties are selling close to their asking price.

Punny, I'm Home!

I was in my room and I saw a group of 10 ants running frantically. I felt bad, so I made a small house out of a cardboard box...

So technically, I’m the landlord and they’re my tenANTS.

Thinking about buying property this year? Reach out for a FREE buyer consultation! We break down the home buying process for you, and run actual numbers to show you how much of a home you can afford in your desired timeline. Text/email us with FREE BUYER CONSULT, and we will schedule with you!

Homeowners, want to know how much your home is worth? Reach out for a FREE home valuation that’s more accurate than your online Zestimate is! You don't need to give us a reason, and we don't expect you to sell if you ask for one. Reply back to this email with FREE HOME VALUATION and we will get to work on yours!

Whether you're planning to make a move soon, considering to rent vs. sell, or maybe you're making a plan for years down the line — We're here to provide insight, guidance, or just a friendly conversation about the market. We are all ears for your feedback on this newsletter too. Let us know what you think or how we can add more value to your real estate journey! Reach out, let's talk!

Growing Together,

Jim & Jennie

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Jim & Jennie

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