December 2023 Newsletter

December is a month filled with traditions, gatherings with loved ones, and the opportunity to reflect on the journey you have traveled for the last 12 months. What have you learned? What are your dreams for the future? Do you feel you have found your place? 

San Diego Real Estate

As we approach the end of 2023, it's a good time to reflect on the current state of the San Diego real estate market and look ahead to what we can expect in 2024.

Over the past two years, we have consistently reported that the inventory of available homes for purchase in San Diego has reached historic lows. To put this into perspective, let's consider the severity of this shortage and the factors contributing to it.

Between January and October, there were 22,118 fewer homes listed for sale in San Diego County compared to the approximate yearly average of 47,000 listed during the 3-year average before COVID (3-YABC). With mortgage rates remaining above 7%, it's clear that many homeowners are hesitant to list their properties for sale. This hesitation can be attributed to the fact that 85% of Californians have a mortgage rate of 5% or lower, 69% at 4% or lower, and 30% at 3% or lower.

In early November, we reached this year's peak inventory of 3,055 homes, and as of today, we have slightly fewer at 2,997 homes. To provide some context, the 3-YABC of 6,271 homes offered double the choices that buyers have today. As we enter the holiday market, we anticipate a typical decline in inventory as unsuccessful sellers withdraw their listings to focus on family and holiday celebrations. Forecasts indicate that the addition of new homes for sale will continue to be limited in 2024 until interest rates drop below 6%.

In November, buyer demand, measured by the number of new pending sales within the last 30 days, hit a 10-year low at 1,338, representing an 89% decrease from the 3-YABC of 2,553 pending sales.
See graph depicting inventory and demand throughout the year

The combination of low supply and low demand has resulted in a more balanced market, where both buyers and sellers have negotiating power. Homes that are priced right in desirable areas still attract buyers, albeit not as many as before.

One thing is certain—change is inevitable. While the market has experienced challenges this year, it's only a matter of time before interest rates drop below 6%, leading to positive movement in supply, demand, seller participation, and home prices. Stay tuned for our year-end wrap-up and annual market forecast in the January newsletter. If you have specific questions about your neighborhood or home, please don't hesitate to call me at 619-890-2877.

Wishing you a happy and safe holiday season!

Featured Listing

North Park

3373-3379 1/2 Herman Avenue

8 BD   6 BA   3912 SF   $2,900,000

This impressive property, located in a Transit Priority Area in San Diego's desirable North Park neighborhood, features 5 updated units across 2 structures, 2 car garage on a 6,250 sqft lot with alley access. The Craftsman duplex offers a 2+ bed, 2 ba unit and a charming 1 bed, 1 bath with shared laundry. The 1950s 3-unit apartment building includes two 2 bed, 1 bath units and one 1 bed, 1 bath, along with a 2-car garage and community laundry. Improvements include: sewer, roofs, HVAC systems, water heater, foundation, electrical, and flooring. With current rents below market, there is potential for over $15k in gross rents once stabilized. Additional development and revenue opportunities with potential detached ADUs and garage conversion, making it an excellent investment opportunity. North Park is centrally located to major freeways, Coronado, downtown San Diego, Balboa Park and beaches make it a highly sought-after area for both residents and investors.

Craftsman Duplex (Front House)
Unit 1: 2 Bed + Optional Rm | 2 Bath
Unit 2: 1 Bed + 1 Bath
Shared laundry

Back Building (with Alley Access)
Unit 3: 2 Bed + 1 Bath
Unit 4: 2 Bed + 1 Bath
Unit 5: 1 Bed + 1 Bath
Garage: 2 car + Storage + Laundry

Contact me today at 619.890.2877 for more information about this fantastic investment opportunity!

Recently Sold 

Grateful for the opportunity to assist an amazing client with the sale of her stunning San Marcos home! Our journey began in May when a past client and mutual friend referred her to us, and we are thanking our lucky stars for the connection. We crafted a 5-month plan to help her part ways with her beloved home of 33 years, guiding her through every step of the process. From editing personal belongings for marketing to tackling unexpected challenges like a leak and mold remediation, we were there every step of the way. Utilizing Compass Concierge, we managed the repair project to alleviate any additional stress, ensuring a smooth and successful sale. Our client's grace and humor in handling every challenge made the experience truly memorable. We are incredibly grateful for clients like her and for our advocates who connect us with such wonderful people. Thank you for trusting us with your real estate journey!

San Marcos

430 Silver Shadow Drive

3 BD   3 BA   1862 SF   $1,050,000

Local Happenings

Click here for San Diego Holiday Events

ALL MONTH LONG

Outdoor Ice Skating

Viejas Outlet Center Ice Rink

Rady Children's Rink Liberty Station

Coronado Skating by the Sea

Lake House Winter Wonderland San Marcos

Ice Skating on the Farm in Julian

Learn More

ALL MONTH LONG

San Diego Botanic Garden Lightscape

Featuring exciting new installations along with returning fan favorites, this one-mile loop in Encinitas has been reimagined to surprise and delight visitors. Merging nature and art, the Garden will come to life at night for all to enjoy.
Learn More

Lifestyle Tips and Tricks

Best Places to Retire in 2024

The Best Places to Retire ranking can help you decide where to spend your golden years. Where will you end up?

Courtesy of US News

25 Dated Design Trends and Solutions

As design trends come and go, there are some that we wish would never come back around. Check out these dated design trends and their solutions.

Courtesy of HGTV

It's Taking Americans Much Longer in Life to Buy Their First Home...

The typical age to buy a first home has jumped to 36 years old, the oldest ever on record. The rising age is a sign that high housing costs and mortgage rates are pushing homeownership out of reach for younger Americans.

Courtesy of CBS News

Best Practices for Using Storage to Organize a Home

New homes are shrinking in size and storage space, and older homes have their share of storage woes as well, which makes it difficult for homeowners to keep their homes tidy and organized.

Courtesy of NAR

Click to view past news and more

Compass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075, 1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.