It may be hard to believe, but in recent months demand has begun to build up amongst buyers who are ready to buy but have not been able to find a home.
It is true that higher interest rates have priced many buyers out of the market or forced them to sit on the side lines. However, there are still plenty of buyers who are qualified, even at higher interest rates, and anxious to buy a home.
So, in the short run, I see the real estate market in our area heating up again. I am not predicting a dozen offers on a just-listed home, as was the case for a number of years during the pandemic, but I do see some number of buyers competing for the few homes that are going to be available.
Of course, as in the years past we will see more homes coming onto the market in the next few months, and those that are move-in ready will be snatched up by buyers quickly.
In the past few weeks interest rates have edged lower and many adjustable loan programs are giving buyers a renewed interest in the housing market. While there is a lot of uncertainty facing the economy, making it tough to predict too far into the future, I see a good old fashioned housing market in the next few months in our desirable San Diego.
Graph below illustrates how home prices reached their peak in April 2022 and started their downward slope throughout the rest of the year. However, prices have been on a rebound from the beginning of the new year, making it more of the seller’s market once again!