We have finally started to see the effects of higher interest rates on San Diego home prices as the real estate market conditions seem to have changed. Nothing happens quickly from a county-wide real estate perspective, but we can see it in the numbers already. Just two months after mortgage rates went up almost a full percentage point in one week, inventory is up, sales are down and prices have started to fall as well. Read more here: San Diego Home Sales and Prices Slip.
Some experts predict this is just part of the cyclical change that takes place after school starts and the summer is officially over, but I see a bigger move here. Investors are pulling out of the market in big numbers, home sellers are chasing the market down and buyers are just flat turned-off by higher rates…
Ready for the good news?
This shift should create a VERY good buying opportunity. I have personally begun my search to buy real estate in San Diego county with the expectation to start making offers around December/January. This is when the market should be at it’s softest spot. Many of the homes I have researched were listed in the middle of the summer and didn’t sell. These sellers have now started reducing the price or “chasing the market down” trying to find out what their home is worth. This is a good sign that deals are right around the corner, so stay patient… A great time to negotiate a deal on your perfect home is right around the corner.
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