4 Reasons to Sell Your San Diego Home in 2018

The San Diego real estate market is going to go through a change.  It is currently a seller’s market and there are many buyers trying to make purchases with few San Diego houses to choose from.  As 2018 progresses interest rates are going to increase, more new builds are going to become available and homeowners are seeing less return on their renovation investments. Below are some of the reasons to sell your San Diego home in 2018.

Excited Buyers

There have been very few houses for sale in the last few years.  The San Diego market is flooded with frustrated buyers who want to leap into homeownership but have few properties to pick from.  Many are trying to make a purchase before their locked-in interest rate expires and that means they are looking to buy earlier in the year.

Typically, the housing market sees sales between March and June.  Areas that see warmer weather may have a longer sale period.  

However, this year is different.  Buyers are searching for San Diego homes now and will continue well into the selling season.  

Interest Rates are Changing

There are so many buyers on the San Diego market right now because they have access to great interest rates on mortgages.  Many lenders are offering very low-interest rates that make it feasible for more buyers to get a mortgage.  The new year is projected to see an increase in these rates.

As these rates increase there will be fewer buyers looking for properties.  If the interest rates are set too high many first time home buyers will have wait to start searching for a property.  

For this reason, the best time to sell your San Diego home might be in the early months of 2018, where more buyers have the ability to make a purchase.

Tax Changes

A San Diego homeowner that relies on claiming their mortgage interest rate and property taxes will see huge changes in 2018.  The amounts that can be claimed are changing.  Mortgage interest rates can only be deducted up to $750,000 a far cry from the $1 million dollar mark it once was.  The cut off for deducting property taxes is now set at $10,000.

Homeowners that live in cities with high property taxes due to hot markets and school districts may benefit from moving.  Most homeowners are fine with paying more in property taxes to live in a great school district.  However, many of these homeowners no longer have children and are looking to move into neighborhoods without high tax costs.

Renovations May Not Pay

Many San Diego homeowners are looking to renovate their homes instead of selling them.  Additions are becoming popular to help a home grow with the family instead of needing to move into a larger home.  Even homeowners that plan on selling are making investments in renovations to get more from their house once they put it on the market.

In previous years homeowners saw greater increases in value for their San Diego home after renovations.  This trend is changing.  Most renovations will change the value of a home very little and homeowners should not necessarily expect to get their whole investment back.  

As more houses are built, interest rates and taxes are increased, and returns on renovation investments decrease homeowners will have a tougher time selling their home.  Selling in early 2018 will still be easier for most San Diego homeowners and they will be able to sell their home at a higher price.  Waiting too long to sell your San Diego home could mean taking a large cut in potential profits or not being able to sell at all.