Why San Diego Condos Are Sitting Longer Right Now

If you've had a condo on the market this summer, you've probably noticed something: it's taking longer than it used to. I've seen it firsthand with a few of my own listings, and other agents I talk to around the county are saying the same thing.

Here's what's actually going on, and what it means depending on which side of the transaction you're on.

It's not that buyers disappeared

Demand for condos hasn't dried up — people still want low-maintenance living, especially first-time buyers priced out of single-family homes. What's changed is how picky they can afford to be. With rates where they are, buyers are running tighter numbers, and HOA dues have become a real sticking point in a way they weren't a couple years ago. A $600/month HOA fee used to feel like an afterthought. Now it's part of the affordability conversation, right alongside the mortgage payment.

Lending has gotten stricter here too. Some lenders have tightened how they underwrite condos with lower owner-occupancy ratios or thin reserve funds, which means a building that would've sailed through financing two years ago might slow a deal down today. That's not a reason to panic, but it is a reason to know your building's financials before you list.

What this means if you're selling

Pricing accuracy matters more than usual right now. Overpricing by even 3-5% in this environment can mean sitting for months instead of weeks, because buyers have more options to compare you against. If your HOA has healthy reserves and reasonable dues, make that a selling point up front rather than something buyers have to dig for — it can be the difference in a close call.

What this means if you're buying

You have leverage you didn't have a year or two ago. Longer days on market usually means more room to negotiate on price, closing costs, or repairs. It's also worth asking for the HOA's financial statements early, before you fall in love with a unit that turns out to have a lending hiccup waiting in the reserves report.

If you're weighing a condo purchase and want to talk through how a specific building's HOA situation might affect your financing, I'm happy to walk through it with you.