San Diego's real estate market is a dynamic and ever-changing landscape that can be influenced by a myriad of factors, including mortgage rates, economic conditions, and local developments. As of late 2024, the question on everyone's mind is whether San Diego is currently a buyer's or seller's market. To answer this, we need to delve into recent real estate news, mortgage trends, and current market updates. **Mortgage Trends** Mortgage rates have been a significant factor in shaping the real estate market in San Diego. Over the past year, we've seen fluctuations in interest rates due to economic uncertainty and Federal Reserve policies. As of now, mortgage rates have stabilized somewhat but remain higher than the historic lows experienced during the pandemic. This has had a dual impact: it has made borrowing more expensive for buyers while also encouraging some potential sellers to hold onto their homes rather than refinance or sell. Higher mortgage rates typically cool down buyer enthusiasm as monthly payments become less affordable. However, this hasn't completely dampened demand in San Diego, where the allure of coastal living continues to attract buyers from across the country. **Real Estate News** In August of 2024, a seismic sea change occured in the real estate industry with enactment of new rules Realtor's have to follow due to the NAR settlement. The impact of these new rules is slowly playign out. Buyer Agents are required to obtain signed Buyer Broker Compensation Agreements before they can show property and Listing Agents can no longer advertise what a selelr will pay the Buyer's Agent on the MLS. The California legislature passed a new law a month later requiring every person in the state who sells real estate, regardless of their Realtor Association, follow the same or similar rules as outlined in the NAR settlement. 27 other states have passed similar legislation. How these changes will impact treal estate is yet to be determined.  The big October Surprise in real estate was the Fed somewhat reversing course on their previously bullish desire to cut intererst rates, causing rates to clumb back up considerably from their almost 2-year low leading up to the September Fed rate cut. With interest rates back up around the previous July levels, Buyer demand is at risk of softening heading into the holidays. With the influx of tech professionals and remote workers relocating to San Diego for quality of life and relatively lower housing costs compared to other tech hubs like San Francisco and Seattle, there has been a sustained demand despite higher mortgage rates. The question is, will that continue?  **Market Update** Currently, San Diego exhibits characteristics of both a buyer's and seller's market, making it somewhat balanced but leaning slightly towards sellers. The months of inventory—a key indicator that measures how long it would take to sell all current listings at the current sales pace—stands at around 2.5 months. A balanced market typically has 4-6 months of inventory. For sellers, this means there's still strong demand for well-priced homes in desirable neighborhoods. Homes that are move-in ready and priced competitively continue to receive multiple offers and often sell above asking price. However, overpriced homes or those requiring significant repairs may linger on the market longer than expected. For buyers, increased inventory provides more choices but also necessitates quick decision-making due to competitive bidding situations. Buyers are advised to get pre-approved for mortgages and be prepared to act swiftly when they find a property that meets their needs. **Conclusion** In summary, San Diego's real estate market as of late 2024 can be described as slightly favoring sellers but with opportunities for savvy buyers who are prepared and informed. Higher mortgage rates have tempered some buyer enthusiasm but haven't significantly cooled down demand due to the region's desirable living conditions and continued influx of new residents. Whether you're looking to buy or sell in San Diego, staying updated on mortgage trends and local real estate news is crucial. Consulting with a knowledgeable real estate agent can also provide valuable insights tailored to your specific situation. As always, careful planning and timely action are key strategies in navigating this vibrant market successfully.