Take a deep breath. Real estate is enough to drive you crazy right now. Buyers are stepping away from purchases. Homes are sitting longer than they have since COVID began. The bumps in interest rates have caused a panic in the real estate world. Take a deep breath. At some point this will settle down. People still need a place to live and the rental market is very expensive in San Diego. My crystal ball (ha!) predicts that we may have a softening of prices, particularly at entry level pricing on detached homes but once that happens I think sales will pick up again because, and I said it above, people still need a place to live and the rental market is very expensive in San Diego. Real estate has always been, and will continue to be, the best way to pass on intergenerational wealth. Give the rates time to settle in and prices to adjust accordingly and I think the market will continue to flow. It may not be pretty in the short run, particularly if there is another rate increase on the horizon, but it will come back.
Some of the large brokerages are betting that the market will struggle for years. Redfin just laid off 8 percent of its employees because it is betting on fewer sales for years. That is probably true nationally but, let me say it again, people still need a place to live and the rental market is very expensive in San Diego. Here is an interesting article in MarketWatch. I remain bullish in the long run but think for the next few months a storm will blow through our industry. Hang on to your hats!