How affordability affects San Diego home prices

Mission Valley Homeowners - Should you wait or SELL NOW?

You're sitting on a goldmine, but how much gold is left?

Mission Valley home prices have increased by over 50% in the last five years. This is good news for you.

However…

Recently, I have noticed an alarming homebuyer trend that will affect your home value if it hasn't already.

The buyers are stretched on their payments, and affordability is a big issue. You may think that's not my problem; it's the buyer's problem. True.  

However, it affects your home value. We've noticed a slow but steady decline in buyer demand. The market is still strong because there is still a lack of condos on the market.

But this could change.

Prices could suffer if either of these happens. If 20% more homes/condos come on the market or mortgage rates increase to over 7%.
 
(this chart shows Mission Valley Median Price 5 years to now. Jan 2018 - $419,500, May 2023 $670,000).

Buyers' Monthly Payment at Today's Rates with 20% Down.

 
These payments are sobering; $3528/mo is a lot for a one-bedroom 1970s condo.
Once buyers hit a tipping point and YOUR CONDO becomes unaffordable, the demand drops, and they rent, double up or move out of the area.

Lower buyer demand lowers your home value.

Call George Lorimer at 619-846-1244 to explore your options. 
P.S. We offer excellent incentives, flexible commissions, complimentary staging, and more if you want to SELL NOW.
 

                                                                                          
George Lorimer, ProWest Properties DRE# 01146839, *Conditions apply. Please disregard if your home is currently listed for sale. We do not intend to solicit other brokers' listings—stats from SDMLS. **Monthly payments are 20% down, 6.5% mortgage property taxes, 1.2 %/yr, and $500 HOA. Qualification income is based on 3 times the monthly housing payment.