This market can be summed up very easily -- the interest rates that have gone up for a year are settling in or occasionally dropping a tiny bit. Buyers have reconciled with the rates and are anxious to buy homes. Most buyers in the market today are extremely strong. We have found with our listings buyers who have a lot of cash in the bank for a substantial down payment. Buyers putting 3 - 5% down seem to have disappeared. With large amounts of cash in the bank, buyers today are comfortable with their mortgage, job security seems to be strong and the buyers are ready to buy. Sellers are still a little stuck in the interest rate mindset and who would blame them? If they purchased a home in the 3 - 4% range, it sort of makes no sense for them to sell and buy if they need a mortgage. Today's rates are in the high 6's and I think the days of 3% are gone forever. Sellers who want to sell but need a mortgage are going to have to reconcile what they want to do, too. The most ready-to-sell sellers either have to sell, they own their home free and clear and are downsizing and paying cash on their next home, or are in a probate situation (one of our specialties -- the probate listing). A fairly priced, clean, bright home should have no less than three offers in two weeks.
Circling back to today's strong buyers, I am confident they have a future refinance on their mind and are weighing the gains of positive equity growth over higher payments for a year or two.
San Diego is currently a seller's market -- there just aren't a lot of sellers.
Comments