Here’s what’s been happening in the first six months of the 2021 market.

In today’s market update, I’m going to compare the numbers in six ZIP codes from May 2021 to the same month last year. 

Let’s start with median home prices:

  • Area code 91910 (Chula Vista): $735,000—up 27.2% over last year
  • Area code 91911 (Chula Vista): $635,000—up 20% over last year
  • Area code 91913 (Otay Ranch, Eastlake): $765,000—up 23% over last year
  • Area code 91902 (Bonita): $908,000—up 17% over last year
  • Area code 91914 (Rolling Hills Ranch): $935,000—up 16% over last year
  • South San Diego: $630,000—up 14% over last year

Of all those ZIP codes, the area with the highest rate of appreciation is Bonita with over 43%. If you own an attached property in Bonita, now is a good time to sell, cash out, or do a 1031 exchange.

“These trends will likely continue for at least the next six months as home prices continue upward.”

In the next six months, prices are expected to inch upward as inventory remains low. Interest rates are likely going to stay the same, which is currently about 3.25%. In our current market, we’re also seeing more and more buyers backing out of transactions. Here are the four things they’re worried about most:

1. Buyer’s remorse. In the heat of the moment, buyers are getting worried about overpaying for properties, so they go home to sleep on it and ultimately end up backing out of the deal.

2. Buyers don’t like a lot of repairs. Many don’t mind paying top dollar for a great property, but they don’t like to have to deal with a lot of repairs. If you have a property as a seller, make sure it’s in good condition; if it isn’t, you can expect buyers to hit you up for repairs.

3. Appraisal issues. If you don’t have an appraisal gap clause in your contract, the buyer can easily back out of the transaction if the property doesn’t appraise correctly.

4. Poor decisions on the sellers’ part. Many sellers aren’t vetting their buyers; they’re focused on getting the highest possible price, not on getting the best offer altogether.

These trends will likely continue for at least the next six months as home prices continue upward.

If you’re thinking about buying or selling a home in today’s market, feel free to reach out to me. I’d love to sit down with you for a consultation.