The real estate market in San Diego was red hot in 2021.
The Federal Reserve has kept rates low, spurring a homebuying wave from 2020 through 2021. But what was once a tailwind can become a near-term headwind for America’s Finest City.
Home prices shot up, inventory dried up, and bidding wars have become the norm over the past two years.
As we enter 2022, buyers want to know what trends will drive the San Diego real estate market. That is why the team at Prevu Real Estate compiled a guide of the most important trends to watch for aspiring homeowners.
Sales prices will continue to rise
Buyers want to know what the San Diego housing market has in store for 2022.
Home prices grew over 27% from 2020 to 2021, the second-highest in the country, following Phoenix, Arizona. Homes sell quickly in San Diego as buyers from San Francisco and other parts of the state move south.
New buyers, coupled with low inventory, means sales will be competitive in the coming year. And while rising interest rates should curb the steep pricing hikes of 2021, demand will remain high.
Commission rebates will save buyers thousands
San Diego buyers face high demand, rising interest rates, and low housing stock in 2022.
But there is a way to save thousands at closing in the new year. Buyers can find financial savings by working with a buyer’s agent that provides commission rebates.
Most brokers split the commission fee with the listing agent. But brokerages like Prevu Real Estate provide a portion of that fee back to the buyer via their Smart Buyer Rebate Program.
While prices are not likely to fall in the new year, buyers who stand to receive cash back from their broker can make their home purchase more affordable.
Mortgage interest rates will rise
It is no secret that inventory is constrained in San Diego.
Before the wide availability of low-interest financing, San Diego homes cost a pretty penny. But after the Fed lowered interest rates, already expensive homes shot to astronomical values due to bidding wars empowered by the low cost of borrowing.
And even with the promise of windfall from a sale, many San Diego owners resisted selling in fear of not securing their next home amidst the competition.
The Fed is expected to raise rates in 2022 to curb rising inflation. The resulting increase in mortgage rates will increase borrowing costs for some homebuyers and slow the pace of home price increases witnessed in recent years.
As a result, a greater sense of normalcy may return with less competition, and some experts anticipate an improvement in inventory as previously hesitant sellers list their homes.
But even with new listings, demand will continue to remain high in the city.
Demand to remain high
Buyers fall in love with the great weather and surfside city living on the sun-kissed streets of San Diego.
But as many offices create hybrid or complete work from home plans, buyers from all over the state flock to the region to make a home.
This mad dash of buyers contributed to the high demand and consequent high prices characterizing the market in 2021. This demand contributed to San Diego seeing the second-highest price growth in the nation.
But demand is not likely to scale back any time soon. San Diego homes provide access to downtown and the beach, all at an affordable price point, compared to the rest of the state.
Inventory will remain constrained
Several factors contribute to the constrained inventory in San Diego. Even if holdout sellers list their properties en masse, there is still an issue with housing demand outpacing new construction.
The shared border with Mexico means the city can’t expand south, and the Pacific Ocean blocks development to the west. Plus, vast nature preserves surround the north and eastern boundaries of the city. But even when there is land to develop, issues arise.
First-time buyers have trouble finding starter homes, and many local administrations push back against high-density developments. Even building starter homes is difficult for developers, who have to get multiple permits before building.
The lack of new construction and resale homes means buyers will continue to face tight inventory in the coming year.
Today’s seniors are more connected than ever, with a renewed focus on retirement as a time of discovery and enriching experiences. The ultimate reward for a retirement well-earned is the wisdom to appreciate it all, and what better place to enjoy that unique perspective than Vi at La Jolla Village, in the heart of San Diego.
All-access pass to good living.
As a Continuing Care Retirement Community (CCRC), Vi provides access to a connected and fulfilling community while making it easy to plan for future care, should the need ever arise. With a care plan in place, residents enjoy greater financial predictability and long-term value, freeing them to focus on making the most out of retirement.
Resort-style amenities at the epicenter of a cultural hub like San Diego offer a retirement experience unlike any other. Paired with exceptional dining, spacious accommodations and dedicated staff, the best of maintenance-free living is all around. And with the introduction of Vista 360 Well-Being, Vi’s panoramic approach to wellness, there are more ways than ever for residents to access it all.
The harmony of mind, body and community.
Courtesy of Vi at La Jolla Village
The key to longevity is striking the right balance in maintaining an active lifestyle with an active mind in a fulfilling community. With newly renovated community spaces and restaurants, Vista brings a variety of opportunities for residents to elevate their well-being through Vi-exclusive “Signature Experiences.”
Vista Enrich takes an evidence-based approach to brain vitality, keeping residents at the forefront of cognitive health through exergaming (exercising + gaming), nutritional plans and informative workshops. It is also home to The Brain Vitality Studio, an innovative facility dedicated to cognitive fitness that has garnered national recognition.
Vista Discover invites residents into stimulating educational experiences, from chef-led cooking demos and guided wine tastings to lectures at local universities and intimate lectures following cultural outings.
While Vista Enrich focuses on brain health and Vista Discover engages residents intellectually, Vista Explore cultivates a sense of adventure through curated travel and local excursions. But broadening one’s horizons doesn’t always require a plane ticket. One recent event brought a taste of the world right to the community: an onsite “jazz cruise” featuring live music and global cuisine served at a series of themed “ports” all within the community’s own ballroom.
“Location, location, location”
Courtesy of Vi at La Jolla Village
One of the biggest perks of life at Vi at La Jolla Village is its proximity to just about everything. With easy access to transportation and local attractions just steps away, residents can explore and engage with their community at their own pace.
“There are trolley and bus stops within a 5-minute walk that will get you to the beach, UCSD Campus, medical appointments, downtown La Jolla or San Diego, et cetera. We rarely use our car,” said resident Tom Yager.
With the best of San Diego just steps away, residents don’t just live in the city, they live within reach of everything that makes it special.
The best of all worlds.
Courtesy of Vi at La Jolla Village
At Vi at La Jolla Village, retirement isn’t a chapter to slow down; it’s an invitation to discover more. Tailored community experiences created by Vista, paired with the vibrant pulse of San Diego just outside the door, mean that residents don’t have to choose between security and adventure, connection and independence. They get all of it.
This is what an all-access pass to good living looks like: the comforts of an elevated lifestyle, a community built for growth and a city made for discovery – all in one place.
To learn more about Vi at La Jolla Village or for details on available floor plans, visit ViatLaJollaVillage.com/SDM.
Growing up, Laika Nur, MD, Scripps Clinic sports medicine specialist, loved watching beach volleyball when the Association of Volleyball Professionals tour came to her hometown of Chicago. A talented volleyball player herself, she remembers sitting in the stands all day, and once, even got a couple autographs. Years later, Dr. Nur was attending a professional event focused on women’s sports, and the discussion turned to a new professional women’s volleyball league. The general manager and coaching staff for San Diego’s team, the Mojo, happened to be in attendance, and Dr. Nur took the opportunity to ask them if they needed a team doctor. Flash forward to the Mojo’s inaugural 2024 season, when Dr. Nur officially became the team physician. Click here to read more about Dr. Nur and how she incorporates lessons she learned on the court into her practice.
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Your feet and ankles probably aren’t something you give much thought to—until something goes wrong. Orthopedic surgeons at Scripps Clinic are on the leading edge of foot and ankle reconstruction, treating patients with sports injuries, deformities, traumatic injuries and other conditions. That includes repairing torn Achilles tendons with a minimally invasive procedure that shrinks the incision site to less than a centimeter, and performing advanced ankle replacement on some patients with ankle arthritis. Read more about Scripps’ innovations in foot and ankle care here.
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Mai Vue was just 34 weeks pregnant when she delivered her baby. Her pregnancy had been complicated, and she’d had a recent second trimester pregnancy loss, which led to her receiving specialized care from Sean Daneshmand, MD, a Scripps Clinic perinatologist who oversees high-risk pregnancies. Dr. Daneshmand and his team took care of Mai during her pregnancy, through the birth of her healthy baby girl and beyond. Mai was part of a program Scripps launched to provide support to new moms in the weeks and months after delivery. The postpartum program, known as Scripps Health’s Fourth Trimester Continuum of Care, provides care for women with high-risk pregnancies to optimize their health after childbirth and reduce the risk of complications in future pregnancies. Click here to learn more.
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It’s estimated that one in five people in the U.S. will develop skin cancer at some point in their lives. When you factor in living in a sun-soaked city like San Diego and the outdoorsy lifestyle that comes with it, that figure can jump to as high as one in three, which makes early detection and intervention all the more important. Dermatologists at Bighorn Mohs and Dermatology Center are using innovative imaging methods and advanced surgical techniques to diagnose and treat skin cancer. For certain cancers in sensitive spots, like the face, dermatologists perform Mohs surgery, removing skin tissue layer by layer until reaching healthy, cancer-free tissue. They also use a process called immunohistochemistry to view tissue samples taken during Mohs surgery in far greater detail than previous methods. Read more about how Scripps is advancing skin cancer care here.
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When endurance athlete Isaac Sanchez learned he had cancer, he felt blindsided. He was healthy, surfed often and was training for an Ironman triathlon. But he had to put that on hold to undergo treatment. His physicians at Scripps Cancer Center developed a plan to treat the cancer in his tonsil and lymph nodes that included six-and-a-half weeks of near-daily radiation and weekly chemotherapy. He also worked with a Scripps Cancer Center dietitian to enhance his nutrition to promote strength and healing. Today, Isaac’s back to doing what he loves. Read more of his story here.
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