June 9th, 2025 at 9:45 am
The Southern California real estate market in 2025 offers both chances and challenges for homeowners thinking about moving. When you are upgrading, downsizing, or moving, a big question comes up: Should you sell your home before buying a new one?
It’s a big decision, especially in a fast-changing market like Southern California, where inventory, competition, and affordability can shift quickly. In this blog, we’ll explore the pros and cons of both strategies, share real-life examples, and discuss solutions like bridge loans and temporary rentals to help you make the best choice for your situation.
More homes are available in many areas of Southern California, including San Diego, Orange County, and the Inland Empire. As a result, sellers now have more options than before. At the same time, interest rates remain a concern, and many current homeowners are sitting on low mortgage rates and substantial equity.
Buyer demand is slowing in some areas and rising in others. Timing your sale and purchase is more strategic than ever.
Selling first gives you the advantage of being a non-contingent buyer. In competitive markets like Irvine or Pasadena, sellers often prefer offers that do not depend on selling another home.
Once you close on your home, you will know exactly how much money you have for your down payment, closing costs, and moving expenses. This eliminates guesswork.
You’re not carrying two mortgages or betting on how quickly your home will sell.
You may need to secure short-term housing, such as a rental or extended-stay hotel. This can be especially challenging in high-demand SoCal neighborhoods like Santa Monica or Newport Beach.
You’ll need to stay in temporary housing before moving again after you buy your new home—adding cost and inconvenience.
Once you’ve sold, you may feel rushed to purchase, which can lead to settling on a home that’s “good enough” rather than ideal.
You only move once and have time to prepare your current home for sale after relocating.
You can wait for the right opportunity without the pressure of being between properties.
If you have significant equity, you may be able to make a down payment without selling first, especially with a HELOC or bridge loan.
Qualifying for a new mortgage while still carrying your current one can be difficult unless your income supports both.
If your current home doesn’t sell quickly, you could be stuck with two mortgages or pressured to drop your asking price.
In hot submarkets like Manhattan Beach or La Jolla, sellers may reject offers that are contingent on another home selling.
A bridge loan is a short-term loan that lets you borrow against the equity in your current home to fund a down payment on a new one. Once your existing home sells, you use the proceeds to pay off the loan.
Example:
Maria and Carlos in Rancho Cucamonga found their dream home but hadn’t yet sold their current one. They used a bridge loan to make a competitive offer without contingencies. Their home sold within 30 days, and they were able to pay off the loan and enjoy a seamless transition.
Is it right for you? Bridge loans are great for sellers with strong credit and substantial equity. They work well in areas with high buyer demand and fast-moving listings.
Some sellers choose to sell first, then rent a short-term property while they house hunt. In Southern California, furnished monthly rentals and corporate housing are easier to find, especially in cities like San Diego, Long Beach, and Glendale.
Example:
A couple from Santa Barbara sold their beachside condo and rented a guest house in Montecito for three months while looking for their next home. The flexibility allowed them to wait until the right property became available—without pressure.
There’s no one-size-fits-all answer. Ask yourself:
The best way to buy and sell at the same time is to work with a real estate agent who truly understands your Southern California community. They’ll help you assess your finances, evaluate market timing, and create a strategy that minimizes risk and maximizes opportunity.
Whether you’re selling, buying, or doing both, our forever agents across Southern California are here to help you move with confidence.
Contact us today for a personalized consultation.
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