Hi everyone! It’s Stephanie from the Legacy Realty Network Team at Keller Williams, and I wanted to share a brief update on the real estate market. As you may know, the real estate market has been unpredictable in recent years, and this year is no exception. Currently, we’re experiencing lower demand from buyers and a similarly low supply.
Recently, mortgage rates have been hovering between 5 and 6 percent, and the Federal Reserve increased the interest rate by 25 basis points on Tuesday. However, this didn’t have a significant impact on mortgage rates. Nevertheless, the latest job report showed a higher number of jobs than expected, resulting in a 53-year low in unemployment rates. This caused the bond market to rally and mortgage rates to rise slightly, causing affordability concerns for buyers.
The supply of homes in San Diego County is also low, with only around 2,300 to 2,400 homes available. Despite this, home values are not decreasing and days on market have actually gone down in both Riverside and San Diego County. Homes are still selling, making it a good time for sellers to list. However, 89 percent of California homeowners have mortgage rates under 5 percent, so the higher rates are slowing down the market for sellers.
In conclusion, despite the challenges, there are still opportunities in the real estate market. If you have any questions, don’t hesitate to give us a call. Have a great weekend and happy Super Bowl!