Did you know there are approximately 2,700 homes in Bernardo Heights? There are about 1,500 single family homes and 1,200 attached (townhomes/condos/twin) homes. At the time of writing, there is only 1 home actively for sale! In the past 12 months, 33% fewer homes have sold in Bernardo Heights than in the previous 12 months. The dearth of active inventory has steadily decreased since last summer, and now we are at new inventory lows.
Econ 101:
Higher interest rates are dampening both supply and demand, and there is a fight going on between buyers and sellers. As rates increased from 3% to 7% in 2022, homes sat on the market longer, while sellers became discouraged from selling. Owners today generally have a lot of equity and an existing mortgage at a low interest rate. The thought of “moving up” is hard when it means your payment will increase so significantly! As a result, here in Bernardo Heights, sellers tend to feel stuck. As the inventory has further eroded this spring, the buyer demand is increasing. Less product means more competition for buyers.
What about home values?
How have these rate hikes and inventory issues affected home values? Here are some numbers to help paint that picture:
Detached Homes
Good news! This 3.3% drop is significantly less than San Diego County as a whole, which decreased by 7.5% during the same period.
During the first quarter of 2023, there were only 8 total detached homes that sold in Bernardo Heights with an average price per square foot of $532. With only 8 comps total, it’s hard to make any statements, analysis or predictions.
Attached Homes:
Between Jan - May 2022, the average price per square foot of sold attached homes was $579. Between June - Dec 2022, the average price per square foot decreased to $539.
Compared to the rest of San Diego County which dropped by 11%, Bernardo Heights attached home values only decreased by 7%.
Our Take:
It seems that rates seem to be a muted effect on home prices in Bernardo Heights. I think it’s safe to say the “sky” didn’t fall in Bernardo Heights despite the national news, which in general is not a good measure of what happens here locally.
What does this all mean for you?
As a seller, we are starting to see packed open houses, multiple offers, and bids over asking again due to the extremely low inventory, even despite the higher rates. Yes, it’s true!
If a home is priced accurately, we are seeing the bidding wars again! The true winners are homes that have been updated recently. Buyers, who now have to pay more for a home and mortgage, are very picky about the condition of the home. They have little to no appetite to buy a home that will immediately need remodeling.
Advice for buyers in the current housing market
If you’re looking to buy a home the current market can seem discouraging. However, prices have paused their upward trajectory and even come down in some spots. When mortgage rates start to decrease again, which they’ve already started to do, demand from buyers will come back and invariably drive up prices.
Remember “date the rate, marry the house”, meaning you can always refinance! Also, when there aren’t many homes on the market, a real estate agent can help you find off-market listings and tell you about upcoming listings before they hit the market. Heck you may have even seen us door knock your home in attempts to find a home for our buyer
Advice for sellers in the current housing market
If you’re looking to sell a home in the current market, having an updated home can help ensure that it sells quickly and at a record price. And because we’re Compass agents, our clients have access to Concierge through Compass. These services enable homeowners to maximize the value of their home without paying out-of-pocket for any necessary improvements to get their home ready to sell!
We’re also experts in Bernardo Heights as we own property here and are supported by a team that includes designers, contractors, and marketing professionals.
If you need help selling your home, please contact us or reach out directly to us!
