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Making it in San Diego: Slowing housing market could create buying opportunity

Posted: 4:44 PM, Dec 27, 2018
Updated: 2018-12-27 20:41:47-05
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SAN DIEGO (KGTV) - San Diego County homebuyers could be gaining an upper hand in negotiations as the region's housing market slows.

A new report from real-estate tracker CoreLogic says 2,936 homes changed hands in San Diego County in November, an 11 percent drop from November 2017. Meanwhile, the rate of home-price appreciation slowed to 4.6 percent year-over-year. The median home price was $565,000 in November.

"It's a good time to get in there," said Mark Goldman, a San Diego loan officer with C-2 Financial. "There's more selection of homes to purchase, and there's probably sellers who are more willing to consider offers maybe a little bit below their list price, and so forth."

CoreLogic says Southern California as a whole has seen its biggest sales drop in three years.

The company says higher interest rates and the volatile stock market could be contributing to buyer pullback. The average rate for a 30-year-fixed is now 4.55 percent, up about a half percent from a year ago.

Goldman said qualifying families, even with a few percent cash down, should be able to get an offer accepted in this market.

"Be cautious, make an offer at a good price, work with a professional realtor who can guide you to a reasonable price, but if you're going to be in that house five years or so, I think you'll be happy," Goldman said.

Goldman said the market is coasting at a rate of appreciation that is more sustainable. He said the 6 to 8 percent annual price growth could not last with wages not growing nearly as fast, he said.

Goldman added he expects the market to speed up again in the springtime, which is peak season, but that he does not expect prices to skyrocket.