The housing market is on a tear, which means buyers will have to pay more money if they plan on jumping into the housing market now.
San Diego home prices increased by 11.2% year-over-year in January, according to the S&P CoreLogic Case-Shiller Home Price Index.
The rise puts San Diego atop a list with other cities like Los Angeles, Detroit and Charlotte, North Carolina.
The price of a single-family home in San Diego County the week ending March 22 was $858,000, according to the San Diego Association of Realtors.
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Market experts say the sharp increase is because of many factors.
“It’s basic supply and demand. When supply is down, prices go up. Then there’s a lot of competition for the houses that are on sale, and that drives the prices up,” University of San Diego Professor Alan Gin, Ph.D., said.
The competition is something that realtors are seeing a lot of recently.
“Personally, I have a client that offered on a property in La Mesa, a single-family home 4/2 it went $100,000 over asking,” realtor Destiny Roxas said.
The average rate for a 30-year fixed rate mortgage as of March 21 is 6.84% according to Freddie Mac.
Higher interest rates than the 3% range seen during the COVID pandemic are keeping some people out of the housing market, but not everyone, according to Gin.
Some market experts are expecting the hot market to remain that way.
“I think the housing market will remain strong again at least for sellers in 2024. There are no signs that the economy is going to head into a recession, despite the high interest rates, and I think the Federal Reserve will cut interest rates throughout the year,” Gin said.
