SAN DIEGO — The real estate days are gone, where you once could offer $100,000 over the asking price, multiple offers, and two days on the market, according to real estate agents in San Diego.
The housing market is cooling off and with higher interest rates. However, there's talk of a housing recession.
Real estate agents say we are not in a housing recession rather the market is stabilizing. Meaning, homes with fantastic views are staying on the market 30 to 45 days which was typical pre pandemic
Panoramic views of San Diego Bay, Mt. Soledad, and the Pacific Ocean, yet a 2, plus bedroom, two bath, 2,500 square-foot smart home priced at $2.3 million in Bay Park has been sitting on the market since May.
“The house is brand new, plumbing electrical kind of surprises me and the view,” said Kim Alger, homeowner.
CBS 8 spoke to the Alger over Zoom while she and her husband are vacationing in Wisconsin.
“We are not really motivated. We love our home,” said Alger. “We're retired so it's time to get out and travel and do things and see if we can sell it."
Like Alger, real estate agents say sellers want to get in on the hot housing market but with interest rates going from below 3% during the pandemic to 6.5% today, buyers are not as eager.
“I saw a funny meme with a skeleton on a bench saying, ‘waiting for the housing market to crash. Still waiting’ so we may not see a crash,” said Frank Powell, The Powell Brothers.
He is Alger’s listing agent and the president elect for the San Diego Association of Realtors and says in July the average median home price was $969,000.
Although the market has cooled off, sales in San Diego County are up 9% compared to last year.
“We are seeing buyers from New York, San Francisco, Silicon Valley,” said Powell.
Powell says aside from housing shortage, another challenge is that younger buyers are bypassing their starter homes.
“We are seeing people say I want my dream house or something they can't afford,” said Powell.
The seasoned real estate agent suggests starting small will be a big payoff.
“If you can get into the market by buying something, even a two-bedroom one bath condo get in there. It may be uncomfortable but that is how you start your generational wealth, get in the market, and start the game,” said Powell.
Powell recommended buyers or sellers do these three things before dipping your toes in the market:
- Plan and save whether it be one to two months or five years.
- Choose where you want to live and how much you want to spend.
- He also suggests hiring a licensed real estate agent to help you.
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