2024: A Market in Transition
San Diego’s real estate market saw major shifts last year—higher prices, more inventory, and an evolving buyer landscape. For sellers, strategic pricing and presentation became key, while buyers gained more room to negotiate.
Key Market Trends from 2024
Interest Rates & Buyer Selectivity: With rates reaching year-long highs, buyers became more particular about their purchases. Homes in high fire zones faced pushback due to soaring insurance costs, with some quotes reaching $18,000 per year. Meanwhile, properties needing cosmetic or functional updates sat on the market longer or required price reductions to attract interest.
Turnkey Homes Moved Fast: Homes that were well-maintained, aligned with current design trends, and priced appropriately typically went under contract within the first 10 days.
Seller Concessions Became Commonplace: A major shift came with changes to buyer agent compensation. Sellers are no longer allowed to advertise a set commission for the buyer’s agent, but they can advertise they are “willing to consider concessions” to help cover the buyer’s costs. In every offer my listings received, buyers asked the seller to pay for their agent’s fee—and in some cases, requested additional closing cost credits.
What This Means for You in 2025
For Sellers:
√ Your home needs to be in top condition. If major upgrades aren’t in the budget, small changes like fresh paint, decluttering, and staging can make a significant impact. I provide my sellers with a detailed, strategic guide on what to update before listing.
√ Pricing matters more than ever. While overall prices rose last year, the market isn’t continuing on an unchecked upward trajectory. Certain sub-markets—like high fire risk areas—are seeing longer market times and price reductions. A well-priced home will attract buyers quickly, while an overpriced home risks sitting on the market. Work with a trusted advisor (like me!) who understands these nuances.
For Buyers:
√ Know your budget—including fire insurance. Many buyers are now limited to the CA FAIR Plan, which means significantly higher insurance premiums. If you’re considering a home in a fire-prone area, factor in:
The home’s defensible space and fire-resistant features
Proximity to a fire station
The added expense of high-risk insurance coverage
√ Understand buyer-broker agreements. The changes in commission structure mean buyers need to have clear conversations with their agent about compensation. Do you want your agent to negotiate their fee with the seller, or will you cover it out of pocket? A great real estate advisor (like me!) will walk you through your options.
The bottom line? The market has shifted to a more balanced playing field, where both buyers and sellers have negotiating power. Whether you’re looking to buy or sell in 2025, having an expert in your corner can make all the difference.
Thinking about making a move? Let’s connect for a personalized strategy session!
