The 2019 San Diego Real Estate market is warming up with the weather. After a brutal holiday season and price reductions of up to $50,000 in Clairemont, we are finally seeing an improvement. We officially shifted to a buyers market in San Diego over the holidays. November and December inventory was up to 75 houses for sale in 92117. There was a real lack of buyers and agents were dropping prices everywhere. I seem to think some of this was caused by the interest rate increases last year.
Things are better now, the overpriced listings are gone, sellers are realistic now for the most part and inventory is down to 34 Active homes as of today! Here is an outdated house in Clairemont we just bought directly from the beneficiaries of a Trust. They sold directly to us and did not have to repair anything or pay real estate agents $40,000! If the house needs work and is going to sell at a discount anyway, why pay agents when a cash home buyer who flips houses like me is going to be your buyer anyway?
The 2019 San Diego real estate market can sustain as long as we don’t see any more interest rate hikes. I hope the Fed learned their lesson last year. Prices have reached high unaffordability levels so we cannot raise rates now without impacting the market. I predict a shorter Spring selling season this year and then conditions could move back into a buyers market this summer as sales slow back down. Real Estate investors in San Diego should take caution and realize that we are entering an extended flat period where prices will not continue to keep going up at the previous pace. Many house flippers in San Diego lost money from purchases they made in 2018 when the market slowed down. We are not predicting a big crash but rather a small pull back followed by an extended flat period. Stay tuned for more updates on our new Clairemont project!