the

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