Why Now is the PERFECT Time to Buy Real Estate
I was inspired to share this insight because of a blog post shared by my team at Kappel Realty Group. One of the most common questions I get is “how do you know it’s the right time to buy a home”. So I thought I’d share an easy explanation of why now is actually the perfect time to buy real estate – especially if you live in San Diego!
Why NOW is the Perfect Time to Buy Real Estate
The real estate market is a bit unpredictable right now. We often hear that home values will shoot up and the market will go wild once interest rates drop, especially when they hit around 5%.
But many lenders have already adjusted their rates in anticipation of future changes. So, we aren’t actually expecting a big drop in mortgage rates when the Federal Reserve makes its next move.
So, why is now the perfect time to buy a home – especially in San Diego?
Over the past five years, we’ve pinpointed two great times to buy real estate, and our clients who listened have seen amazing returns. Based on current market trends and data, we’re now in a third prime buying opportunity.
Success Stories from the Past:
- March/April/May 2020: At the start of the pandemic, we told our clients to buy real estate despite the uncertainty. Those who did saw some of the highest appreciation rates ever. Many made tens of thousands, hundreds of thousands and even millions by investing during this “time of fear”.
- December 2023 – January 2024: When interest rates were high (7%-8%), we advised buyers to jump in, knowing future refinancing would help. Despite the usual slow season, San Diego saw record price increases. Those who bought early in 2024 saw over 10% appreciation in just six months.
What Makes Now the Perfect Time to Buy Real Estate?
- Market Time: Homes are taking longer to sell, with the average time over 70 days. This means there is less competition for buyers, giving you more room to negotiate without rushing to waive contingencies.
- Active Listings: The number of homes for sale is nearing 5,000, the highest since 2019. More homes on the market mean more choices and less competition for buyers.
- Demand: The number of open escrows is at its lowest since 2017. With fewer buyers in the market, you’ll face less competition and fewer bidding wars.
What Are The Perfect Conditions for Buyers?
With longer market times, more homes for sale and lower buyer demand, it’s an amazing time to buy.
My Advice for Buyers and Sellers:
- Buyers: If you buy a home before the end of the year, you’ll benefit from less competition, more options and potentially lower prices compared to next spring.
- Investors: Now is a great time to take advantage of bonus depreciation. Buy property before the end of the year to take advantage a 60% bonus depreciation rate, which drops to 40% in January 2025.
- Sellers: If you can wait to sell, hold out until spring 2025. But that doesn’t mean you should wait to get the ball rolling. Preparing now can position you to take advantage of more buyers and potentially higher prices.
Overall, current market conditions make it the perfect time to buy real estate. Acting now could lead to huge benefits in the near future.
If you have any questions about buying or selling a home in San Diego, how investment properties work, don’t hesitate to reach out. You can shoot me an email here or even reach out via Instagram.
Not in San Diego? I have a network throughout the US that I can tap into! I know lenders and other Compass agents all over the country in big cities and small towns. I can put you in touch with the right people to save you time & ensure you get the right help.
You can also find more of my blog posts related to real estate, investing & the San Diego market here.
