I hope 2021 has been good to all of you so far. The San Diego real estate market has remained strong, but we are already starting to see some changes from last year. San Diego is one of the hottest markets in the nation. We are behind only Phoenix and Seattle for the largest increase in prices during this year. We entered the year with the same low interest rates we continuously saw throughout last year and prices were still high due to strong buyer competition and very limited inventory. Interest rates started to rise slowly in January. March saw rates increase even faster. We are seeing mortgage interest rates close to 3%, compared to 2.5% on New Year’s. I expect rates to continue upward to about 3.5% by the end of the year. 

At the beginning of the year, the median home price was $640,000. That is a 9.4% increase in the last 12 months. This was due mostly to the strong competition for homes and the low inventory we experienced all year. Many potential sellers have waited to sell because of the pandemic, but now that rates are increasing it may be better to sell sooner rather than later.

I do not anticipate price appreciation to slow this year. Although rates are rising, fewer pandemic restrictions, vaccinations, commercial openings and the Stimulus Package will all support strong growth for the balance of 2021. The Fed has committed to try to keep inflation low. But, real estate is always a great asset class in inflationary times. The improving economy will overpower the impact of higher interest rates on real estate prices.

What does this mean for you?


  • Keep an eye on rising rates
  • Prices are more likely to continue to climb than decline
  • Act fast when you find a home you love, there are many pre-approved buyers competing for the limited inventory of homes.


  • Whether you plan to move to a larger or smaller home, you can get top dollar for your departure residence now and hopefully a better price and interest rate on your next home.
  • Be prepared for a fast closing
  • Take advantage of rates yourself before they rise

Let me know when I can help.

  • Call me to formulate a mortgage plan for your purchase.
  • Let me get your financing approved before you start shopping to make your offer more compelling.
  • We can close FAST.