Is the San Diego Real Estate market cooling off?

We’ve all seen the news. Everybody is talking about a change in the market. But what does that mean? Is the current market “cooling off” in San Diego, or maybe is stabilizing? We asked two experts for their opinions regarding this matter;

Elias Levy, the primary owner of Better Homes and Gardens Real Estate Clarity in Chula Vista, California.

Horacio Herrera, a Loan Originator at Cardinal Financial in Chula Vista, California

What trends are we seeing in the San Diego County Real Estate Market?

Ask the experts – Elias Levy and Horacio Herrera*

We are still in a seller’s market, but with the rising inventory, we see the market start to make the shift to stabilize.

Will the market slow down?

No. The largest demand for housing comes from millennial buyers whose demand exceeds the existing inventory.

Should buyers wait to buy if they can?

No. With rising interest rates and strong property values, the monthly cost to purchase a home will stabilize or continue to increase.

What trends are most important to watch?

From a lender’s perspective, Mortgage Rates.  Buyers are sensitive to increasing rates as they result in higher monthly payments.

From a broker’s perspective: Inventory.  The increased inventory gives buyers more options and improves their ability to negotiate.

What effect does low inventory have on the real estate market?

Low inventory leads to higher competition between buyers, introducing urgency and desperation.

*The comments above are personal opinions, we encourage consumers to do their own research.