It is no secret that the San Diego real estate market is HOT, but it depends on what your definition of hot is and what side you’re playing on. The San Diego Real Estate market has seen home pricing increase month after month for the last few years, with no real indication as to when the increase will let up. Some may say this is a good thing, which it is, if you’re a seller.
You see, this is a great time for homeowners to sell. Why? The current market conditions; low inventory + high prices = seller’s favor. On that same token, these market conditions are also having a “not so” positive impact on buyers. Just to clarify, unlike the shortage of inventory that we currently have in San Diego, there is no shortage in buyers.
So what’s happening to these buyers due to these market conditions? They can’t afford to buy that dream home they envisioned. Most first time buying families in San Diego are approved right around the $450,000 price point, leaving them with very low to almost nothing of an option to purchase their (4 bed, 2,000 sqft, with a backyard to host) dream home…The market has officially began to “price out” buyers!
Just recently, I had a few clients in this exact scenario…One family in particular, the Manzo Family who were VA buyers. We initially began the Manzo’s search in South Bay San Diego. After expressing their concern of not being able to find their dream home anywhere near this price point in San Diego, I thought of expanding our search. With the approval amount of $450,000, they were a bit restricted on inventory available to them within that price point.
Many buyers are being priced out of the San Diego Real Estate market and are starting to be open minded to the idea of purchasing their dream home in the Temecula area which includes; Wildomar, Murrieta, Menifee and of course Temecula. I shared a list of homes with my clients that met most, if not all, check boxes of what their dream home required. We found 32 houses under $425,000 throughout South Riverside County. 2 weeks after this pivot in our home search the Manzo’s were in escrow, and a short 21 days after that they were the newest home owners in Wildomar and Riverside County.
So I ask you this question. If you had the opportunity to find a spacious 4 bedroom, 2,000 sqft. home, for $425,000 and only 30 minutes north from Escondido/North County…Would you do it?