The market has changed, priorities of buyers have possibly shifted, and there more properties are on market, with less demand. Some buyers may feel that they have time to wait, and although the market has relaxed a bit in terms of bidding wars and inventory, the experts forecast continued increase in home prices as well as interest rates.
Despite concerns over inflation, Freddie Mac’s quarterly forecast reports a robust real estate market that may be softening when it comes to demand, predicting a strong performance for the remainder of the year.
The average 30-year fixed-rate mortgage is expected to be 3.1% in 2021 and 3.7% in 2022. In 2020, the 30-year averaged 3.1%.
House price growth is expected to be 12.1% in 2021, slowing to 5.3% in 2022. Growth was 11.3% in 2020. Home sales are expected to reach 6.9 million in 2021, remaining flat in 2022. Sales were 6.5 million in 2020
Our market is still challenging due to low inventory and an ever increasing sale price. Waiting could cost you the house you want because home prices will increase and so will interest rates. This could potenatially price you out of a property that you could qualify for today.
For example, my husband and I just bought a house in December and got a killer mortgage rate under 2.8%. The same floor plan sold almost $150K over that price not four months later.
It’s really important to choose an agent that has a pulse on the city, is a seasoned agent that knows how to negotiate the best terms and is easy to get a long with.
Similar to when I taught third grade, each student is different, just like each one of my clients is different. And different circumstances require a different map or plan of action. Being present in the community and aware of coming soon’s or new developments on the horizon is important as well as being able to think outside of the box in tight markets. The greater knowledge your agent has, the more information they will be able to provide, so you may make the most informed decision for you and your family.
If you have questions about real estate in San Diego, send me a private message, text, or call. I’m here to help!