San Diego Luxury Housing

The U.S. housing market remains robust, with strong activity reported across both rental and residential housing fronts. Single-family rent prices are increasing rapidly, as demand for single-family housing and inventory constraints forces some buyers to rent....increasing competition and pushing rents up across the nation. As temperatures drop, existing home sales continue to be plentiful, buoyed by strong demand, low interest rates, and a slight uptick in new listings in recent months, according to the National Association of Realtors.

With interest rates inching upward, and experts expecting further rate increases on the horizon, motivated buyers are hoping to lock in their home purchases to take advantage of what are still historically low rates. Federal Reserve Chair Jerome Powell mentioned that the U.S. central bank will likely begin tapering in November but will keep its benchmark interest rate untouched for now. Powell discussed that the Fed may need to raise rates in the future to prevent inflation from spiraling but that is not happening at the moment.

The San Diego housing market has been nothing short of insane and luxury is no exception. Luxury housing emerged from lockdowns of COVID-19 with unbelievable strength and has reached unprecedented levels. The luxury home market in SD County, defined as the top 10% of all closed sales, is currently at $1.25M but is set to move to $1.5M at the start of 2022.

The latest real estate news that is making headlines is that of the real estate firm Zillow Group Inc. Zillow's decision to shut down it's iBuying business is more than just a response to the volatility of the Zestimate, but rather an indication that technology can't solve everything. Zillow Offers will complete the purchase of an additional 8,200 homes -worth up to about $265 million - it is currently under contract to purchase. The company expects to lose up to 7% on those homes according to The Wall Street Journal reports.

I continue to take many calls from Sellers and Buyers in this marketplace and always welcome the opportunity to reconnect with you or speak with your referrals.