Are We There Yet?

Are we at the top of the market yet? I get this question almost daily from buyers and sellers. I wish I had a crystal ball. While I don’t think prices are going to drop I do think as more inventory comes on the market things will flatten out instead of continuing to rise in the crazy fashion they have for the last year. I checked in to see what some of the economists who follow real estate had to say and they seemed to agree. My take away, and what I am seeing in my brokerage, is that we have a much larger number of buyers than sellers right now. Combine that with low interest rates and tighter lending requirements and there doesn’t seem to be a black cloud in the near future. Per one article I read, real estate experts don’t believe the market will really slow down until mortgage rates significantly jump up. Currently, they’re hovering around 3% for 30-year fixed-rate mortgages. While they fell into the mid-2% range last year, rates are still at historic lows, making mortgage payments more affordable for buyers. If they shoot up, that equation could change.

Office

Tracey Stotz, Broker

(619) 200-0918

5550 Grossmont Center Drive. #440-2634, La Mesa, California 91943