The real estate market is changing but it is not necessarily for the better if you are North County Mountain San Diego home buyers. Real estate trends are showing that the lack in houses for sale is not only carrying over into the new year but is steadily getting worse. The change in mortgage rates is forcing most homeowners into holding on to properties instead of selling. This means that North County Mountain San Diego home buyers that are looking for real estate may find it difficult to make a purchase.
Below are some market insights to be aware of.
Spring has often been the best time to place a house up for sale. Many new builds are revealed and sold during the spring.
However, this spring is not likely to see many existing houses for sale. Homeowners are scared of the rising mortgage rates and are choosing to stay in their existing North County Mountain San Diego homes. Instead of selling to move into a bigger, better house, a number of homeowner are investing in remodels to make their house fit their needs.
As less people are willing to sell, there is more demand for houses. The ratio of North County Mountain San Diego home buyers to sellers is increasing dramatically which is pushing more sellers to increase the price of their homes that are for sale. They are able to charge higher prices in hot markets because the buyers have no choice but to pay.
Last year saw extremely low rates on mortgages. People were flocking to get a mortgage because the rates have not been this low in years. Now these rates are increasing. Buyers are hoping to make a purchase with their previously locked-in rate. If they do not move quickly this rate is going to be evaluated and changed with the end of their loan terms.
There are many companies trying to build homes to keep with with the demand. However, they are not able to build enough to compensate for the number of people staying in their homes long term. The cost of build a home and the lack of space to build in many popular areas is creating problems for new builds.
As more people push to make a purchase the prices of North County Mountain San Diego houses is likely to grow higher. There are too many North County Mountain San Diego home buyers that are needing to find housing and not enough new or old houses to satisfy this need. First-time home buyers may find it difficult to find anything within their price range.
There are many North County Mountain San Diego home buyers that have started their process before the market started to change. They were enticed by low rates, an opportunity for low down payments, and the ability to get a loan with subpar credit. With the many changes the real estate market is seeing these buyers may not have as much luck getting a loan in the new year.
The real estate market greatly favors the seller. There are few homeowners that are looking to sell in the new year and few new homes being constructed. Any buyer that is trying to make a purchase will find higher interest rates, higher housing prices, and intense competition. As the year progresses North County Mountain San Diego home buyers will have a harder time to get a good deal on a property.