Why is the real estate market slowing down
When will the Real Estate Market slow down?
well the housing market here in the
united states has been super crazy over
the last six months since san diego is
no different
and i get this question all the time
like birds why is the market so crazy
and when is it gonna cool
well i'm gonna try to break it down for
you a little bit here in this video
benefit has changed the way we work and
it's changed the way we live people
living in densely populated cities
wanted to get out of it they wanted to
go to the suburbs and that's why the
north counties suburbs in san diego have
been super crazy over the last
six months house comes on the market on
thursday it's gone by monday one house
would go for
800 then it would go for 850 then 900
then 950
and so on and it just keeps on going
although in the last two weeks i felt
like it started to slow just a little
bit
and i'm hoping as more inventory comes
on the market that will start to
slow the increases and not have 20
offers and maybe we'll have five offers
i can live with five offers
with that said if you could work from
anywhere in the united states san diego
in particular is a very popular spot
that's why we've had so many relocation
people to move here in the last you know
year or so people from san francisco los
angeles chicago
new jersey texas high erin and jd people
are also
like i said trying to move to the
suburbs trying to get out of the densely
populated cities
people want more yards they want more
space they want more outdoor activities
because
you know being indoors these days seems
to be not everyone's favorite thing
we can be outside all year round which
is a big thing for san diego
second reason is an obvious one interest
rates have been super low
right when the pandemic hit interest
rates were right around 3.75 percent
and they dropped a whole point down to
about 2.7
somewhere even a little bit lower that
on a 30-year fixed it's pretty
attractive to a lot of people
it's going up a little bit since then
it's around three percent right now and
they're projecting it to go up again
this year
so my prediction is that once the rates
start get to 3.5 percent
plus you'll finally see the market start
to settle down a little bit
you won't see 20 30 offers on properties
maybe you'll just see five which i can
live with five
and then finally get into a home because
a lot of buyers they don't care if the
rate's three percent or three point two
five percent
they just wanna get a home because i've
worked with a lot of buyers over the
last you know
six months or so and some of them even
just gave up looking just because they
were tired of doing the bidding war
thing because this market isn't for
everyone so if you don't want to get
into it
anymore you might just be better off
waiting it out third
reason on my list building costs have
gone up a lot during the pandemic and
lumber's gone up a lot it's gone up over
200 percent
since april 2020 so it's doubled the
cost
of lumber here in the whole united
states not just san diego if you're
looking to build something right now or
add on to your house and be a lot more
expensive to do it
in this day and time and this kind of
goes hand in hand with the home builders
in 2008 when the housing market crashed
home builders basically stopped building
for three years so
they've been playing catch up ever since
then and once this housing rush
started six months a year ago then they
were already behind
so home buildings should catch up in the
next you know five to seven years or so
but it's gonna take a while especially
in north county san diego there's just
not enough home building going on here
and then as far as affordable
ability there's barely anything so if
you're looking for anything under a
million dollars
for new construction good luck trying to
find it because there's just not much
out there
so with all that said i do see prices
still continue to go up there's not
going to be any major crash unless
something
else happens that we aren't aware of but
once interest rates go up to 3.5 percent
plus that's when i think you'll finally
see a rush slow down a little bit you
can finally breathe
there won't be a hundred people trying
to get into the same property so if
you're still looking out there
stay strong i know it's hard out there
and uh hopefully you'll be able to find
a home
that's right for you so thanks for
watching hopefully it was helpful and if
you guys have any questions
feel free to reach out and if you're
ever planning on moving to san diego i'd
love to help you find your next home
thanks for watching catch us next time
bye
