The San Diego housing market is one of the most dynamic and intriguing real estate markets in the country – and it’s easy to see why!
San Diego is an attractive, coastal location with beautiful views and a desirable lifestyle. Plus, it is a fast-growing city with wide appeal, quality education, and expanding job opportunities.
Despite high real estate costs, the city remains more affordable than many other major cities in California. As a result, it has an influx of new residents and there’s no sign of demand slowing down anytime soon. This means that it is more important than ever to perform thorough research and reflect on your top priorities.
So, what do you need to know if you want to buy a home in San Diego in 2022? To help you get started, take a peek at these 4 key components of what to expect in the San Diego housing market in 2022!
1. Low Inventory, High Competition
For now, high demand in the San Diego housing market is the name of the game.
Due to low supply and a scarcity of land, there are only so many available homes. In fact, housing inventory decreased by nearly 50% in 2021, making for an uber-competitive market.
Expect a Strong Seller’s Market
Some people may hint that a crash in the market may be on the horizon, but those rumors are unfounded. Instead, expect this seller’s market to continue strong for the foreseeable future. A slowdown is not anticipated in the San Diego housing market. On average, San Diego homes sell in only 11 days right now!
Furthermore, the current median home price in San Diego is $811,000. This is an astounding 19.3% increase compared to last year! With values like this, all signs point to a continued housing boom in 2022.
2. New Home Construction Is Catching Up
Next, the real estate forecast in San Diego makes new construction enticing as well. Here’s why.
Demand for new home builds in San Diego is sky-high, but there is a multitude of factors that complicate the construction timeline. In fact, the role of construction and development in the San Diego housing market is a bit of a wildcard these days.
The continuing impacts of the pandemic result in labor shortages, high construction costs, and backlogs of essential building materials and equipment. These obstacles significantly lengthen the timeline to build a new home on the San Diego housing market.
New Construction Isn’t Slowing Down
Even so, construction continues in this popular city. Around 9,000 residential housing units are slated for completion in 2022.
Additionally, non-residential construction projects are a major construction component. Government-funded projects such as an expansion at the San Diego airport and the development of science and industrial sectors mean that builders will be incredibly busy throughout 2022.
As more and more people look to buy a home in San Diego, there may be more available homes to choose from if construction can be completed in a timely manner. For those homebuyers who are not in a hurry, it may be worth it to hold out and consider building a new home. If you have the time to spare, it is a good way to get exactly what you want in San Diego.
3. Best Time To Buy in San Diego
Depending on the time of year in San Diego, the price of a home could fluctuate nearly $150k from the typical average home value! Timing really is everything in the San Diego housing market.
April is hands down the worst month of the year to buy a home in San Diego. Prices will be at their peak because spring is a popular time to sell and the competition is fierce.
On the flip side, the best time of the year to buy is in October. Savings could be as high as $300k! Competition is generally lower in the late fall, making it easier to enter the housing market in San Diego. You may also be able to score a deal in the winter but beware of higher mortgage rates.
Now that you know what to expect at different points in the year, let’s take a look at the best-rated neighborhoods in the city!
4. Understanding The San Diego Neighborhoods
Here’s some good news: The San Diego housing market is known for its variety. If you switch your home search from one neighborhood to another, it can lead to a drastic difference in average home price.
It comes as no surprise that the top-rated neighborhoods have extremely high home prices, but they are also incredibly family-friendly and feature top-ranked schools.
Find a Neighborhood that Fits Your Needs
Sabre Springs and Miramar Ranch North are on the lower end of the cost spectrum, with average home values in the mid- $700-900k ranges. From there, the average home values jump to $1M and above in coveted neighborhoods such as Del Mar Mesa, Pacific Highlands Ranch, and Torrey Hills.
You’ll also want to consider proximity to the water and the feel of the city itself. Pacific Highlands Ranch is much suburban in nature. Whereas Del Mar Mesa, Miramar Ranch North, Torrey Hills, and Sabre Springs all have a more urban atmosphere.
When you start your journey into the San Diego housing market, establish your top priorities and non-negotiables. Keep that list handy to navigate which neighborhood is your best all-around fit!
Make A Move With New Venture Escrow
All eyes are on the San Diego housing market! In order to stay in tune with all of the changing developments in this appealing city, it takes a well-crafted strategy and plan.
Once you are ready to buy a home, invest in an escrow account with New Venture Escrow. We have years of experience in the San Diego housing market. So reach out today for help closing on your future home!
