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Everything You Need to Know About the San Diego Housing Market in 2018

With its picture-perfect beaches and idyllic weather, San Diego is one of the most sought-after cities for homeowners.

But how do you land the house you love in the neighborhood you want?

Understanding how the San Diego housing market works gives you a significant advantage. With a firm grasp of the market, you’ll know when to buy that dream home for the best price.

So how’s the San Diego housing market measuring Up in 2018? Let’s take a closer look.

Why the Economy Impacts the San Diego Housing Market

What does San Diego’s economy have to do with the housing market?

The two often go hand-in-hand, as a growing economy is a classic indicator of a strong housing market.

So far, San Diego is proving just that. With steady industry growth and unemployment at just 3.1 percent, lower than the national average, the housing market is looking strong for the rest of the year.

This is great news if you’re eyeing San Diego as a real estate investment.

San Diego Housing Prices

San Diego’s housing prices have increased by 7.6 percent from the previous year. The average median home price now stands at $623,000 according to Zillow.

Let’s parse this out by housing type:

If you’re in the market for a single-family home, anticipate a price of $619,000 or more. San Diego condos run a little lower at $428,000, while a newly built condo can cost upwards of $690,000.

Housing prices also vary by community. For example, if you’re in La Jolla expect housing prices of $1.6 million or more. While Del Mar has seen its housing prices rise to $2.6 million.

So when is the best time to buy a house in San Diego? Let’s check the temperature to find out.

Hot Versus Cold Real Estate Markets

In its current state, La Jolla is an example of a cold market. What does this mean?

To understand, let’s break down cold versus hot markets:

When home sales are low but inventory is high, that creates a ‘cold’ market. That’s music to your ears if you’re a buyer, as sellers are more willing to negotiate prices to unload their homes.

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Other signs of a buyer’s market include declining home sale prices, fewer buyers on the market to compete with, and homes that have been on the market for more than six months.

On the flip side, when the market is hot, that’s great news for sellers. This means housing inventory is low but competition is high, so buyers are quick to purchase in a crunch.

Explore Your Options

Now that you know how real estate markets work, ask yourself where you fit in.

If your neighborhood of choice is running cold, now would be the best time to swoop in. If it’s running hot, get a one-up on the competition with the help of an experienced real estate professional.

Remember, the market isn’t static. Frequently check your San Diego housing market forecast to improve your chances of landing the perfect home!

If you found this blog helpful, you might also want to read, 5 Things Homebuyers Are Looking For in 2018”.

Want to learn more about what San Diego has to offer? Sonja Huter is a premier specialist of luxury real estate in greater San Diego. If you’re in the market for properties in La Jolla, Del Mar, Rancho Santa Fe and other elite coastal communities in North San Diego County contact Sonja Huter Real Estate today!