In states experiencing colder winters, a more prominent real estate selling season exists where a significant slowdown occurs when the temperature drops, typically from November to March. San Diego also has a slower season but it’s a shorter window usually from just November to the end of December. 

The data shows about a 50% drop in closed transactions during this time. But unlike most of the northern part of the country, sales in San Diego County quickly pick up after the first of the year. 

I suggest to my active buyers to keep looking during the holiday season because there is less buyer demand and sometimes good deals can be had. Also sometimes a seller will agree to a slightly longer escrow period, agreeing to close after the first of the year.

Unfortunately the trend of first-time homebuyers closing transactions dropped to a historic low of just 24%, dramatically down from 31% last year according to the Association of Realtors. 

One issue is that home prices continue their upward trend year after year, making it ever more difficult for first-time homebuyers to purchase a property. 

Another issue is that first-time homebuyers are competing with older buyers who are more frequently paying cash or mostly cash. Finally, higher interest rates have the greatest negative effect on homeowners with the highest loan to values, namely first time homebuyers.

First-time homebuyers usually put down just 3% to 20% as a down-payment and sellers tend to prefer the all-cash buyers to reduce risk that a property might fall out of escrow due to a problem with a loan. The average age of a buyer recently reached 56 years old, an all-time high and up from 50 just last year! Older people are buying primary homes, secondary homes, and rental properties. First time homebuyer’s average age also jumped to 38 years old from 35 years last year. 

It’s a troubling trend because society benefits in many ways when young people purchase homes and start to establish wealth. Also by being property owners, more care is taken in the improvement of the home and couples are more likely to have children when owning their home.

Because of the affordability issue, the share of married couples purchasing recently increased to 62% of all buyers. Single people are having more difficulty affording their home purchase as the median income of home buyers is now over $100,000. 

Another interesting trend is that 73% of recent home buyers did not have a child under the age of 18 in their home, the highest share ever recorded! This is another troubling trend demonstrating the lower percentage of young couples choosing to have children, an important metric for the future growth and stability of our country. 

Based on Association of Realtors buyer surveys, one of the top reasons to buy or sell primary homes currently is to be closer to family and friends. Lots of parents prefer to be near their children later in life and is currently a significant driver of transactions in the marketplace. 

If you have any questions regarding local residential real estate, feel free to give me call to chat and I would be happy to answer questions or give you an opinion on your various options. 

MARKET REPORT (Single Family): Área universitaria (92115): median price up 2.6% year to date to $935,000 with 34 homes for sale, inventory up 13%. San Carlos (92119): median price up 15% to $1,110,000 with 24 homes for sale, up 26% year over year. Del Cerro/Allied Gardens (92120): median price up 9.4% to $1,149,000 with 24 homes for sale, up 33% year over year. 

– Sarah Ward is a REALTOR with Fine & Coastal. Reach her at: [email protected].

Crédito de la foto: Pixabay.com