Spring is officially here and that usually marks the beginning of the hottest real estate market of the year in most parts of the country. San Diego County is no different, as we typically see a major uptick in real estate sales beginning in March.
A Buyers’ Advantage?
2019 should be an especially interesting spring real estate market as it’s the first time in several years where buyers may actually have the advantage. With the home prices steadily going up in recent years and the housing inventory being very low, it’s primarily been a strong sellers’ market here in San Diego. Buyers had to compete just to have any shot at making an offer. Homes were selling quickly and often way above the asking price.
However, we’re starting to see things level out and swing back in favor of the buyers this year, especially those looking for entry-level homes. Though home prices continue to go up, the acceleration rate has been on the decline. Spring also typically sees a boost in housing inventory with more sellers deciding to put their homes on the market and more new homes being built. Also working in the buyers’ favor right now is mortgage interest rates. February saw a nice dip in mortgage rates thanks to some stock market volatility and the Federal Reserve will likely keep interest rates on hold for awhile.
Metropolitan Market Trends
These past few years, the West Coast has been more like the Wild West when it came to real estate. The sellers’ markets were extremely strong in major metropolitan markets like Seattle, San Francisco and throughout Southern California. Buyers in San Diego are starting to see the light with lower interest rates available, increased spring inventory and home prices that are starting to level out somewhat.
“The housing market remains poised for a strong spring,” says Joel Kan, associate vice president of economic and industry forecasting for the Mortgage Bankers Association. He notes that loan application volume rose 2.3 percent in early March. “We’re starting to see signs of more new residential construction and inventory, which increases buying opportunities for the many home shoppers who have been hampered by the ongoing lack of supply.”
San Diego Mortgage Impact
As always, I will be keeping a very close eye on the San Diego real estate market throughout the spring and summer. At Transparent Mortgage, we saw a significant increase in mortgage loan applications in February because of the lower rates and a general anticipation for the regular hot spring market. This is an encouraging sign that buyers are ready to make their moves and economic factors are allowing for it to happen. Sellers will still be motivated by market conditions, as well, so it should be an exciting spring and summer real estate market here in San Diego and throughout Southern California.
If you are looking to buy a home, don’t wait to get started on your mortgage loan application and get pre-approved for your loan. This could be your ideal time to buy, so now is the time to contact us at Transparent Mortgage. Call today at (619) 701-3906.