But what is changing? The speed at which homes are selling. In the first quarter of this year, we saw homes selling on average in 17 days. A strong seller’s market is under 60 days, so 17 days was complete INSANITY!
This fast-paced market was caused mainly because of a very low inventory. We started 2022 with just over 1,400 homes for sale in San Diego County. To put this in perspective, when the “bubble burst” in 2008, we had more than 17,000 homes for sale in San Diego County. There was more inventory than needed to satisfy the demand. Now, we have a lot less inventory than we need to give every buyer a home.
But the rise in interest rates has caused a slowdown. In San Diego County, the average time on the market is now 42 days (Still a strong seller’s market, but much better than 17 days).
What does this mean for buyers?
They now have a much higher chance of getting that home that they fall in love with. The rise in rates has kicked many buyers off the market and has caused many others to reconsider their price point. So competition has decreased. But before you get scared from what I am saying or get discouraged because of rates, I invite you to get prequalified for a loan. I have said this multiple times: no one lives in the price of their home, nor in their interest rate. What we all care about is what our monthly payments will be. And most mortgage products nowadays have fixed interest rates, so whatever you pay on your first month will be the same as in the 30th year. And with me as your agent, we will write a killer offer for that home!
What does this mean for sellers?
It’s an excellent opportunity to take advantage of the equity built over the last months. The most important step in selling your home is to price it right with the help of a knowledgeable agent. This will guarantee the sale of your home in the least amount of time. And with me as your agent by your side, the sale will be with the least amount of hassle!
