Wow, San Diego Buyers! Can You Believe Those Interest Rates!?

San Diego Real Estate Market Trends

San Diego Real Estate Market Stats (click to elarge)

Have you noticed how the interest rates have continued to fall through the market recovery?  According to most financial analysts, the current interest rates are artificially low and being kept that way through the Fed in an effort to stimulate borrowing in the housing segment of the market and through inflation.

This is essentially a “false positive” around the actual state /condition of our real estate market.  This is also apparent in the statistics used on the market activity in San Diego.  Numbers reported show an appreciable gain year to year from 2009-2010.  This I believe, this is also a “false positive”.  Consider the activity reported through the end of May 2010 – sales up and prices up!  However, much of that was fueled by the tax incentive (State and Federal), limited inventory, and continued pressure by the Federal Government on lending institutions to process and approve short sales, while continuing to sit on over 2 million foreclosed homes – “shadow inventory”.

When one considers the facts:

  1. Unemployment is still rising (California is in the double digits!)
  2. Interest rates are artificially low
  3. Bank foreclosures (although they are slowing they are plentiful)
  4. Banks are sitting on 2 million that they have already taken back
  5. State and national deficits
  6. Waning builder confidence
  7. Waning buyer confidence
  8. Dramatic drop off in sales of existing homes since tax credit expired….

And numerous other indicators seem to predict that we are from out of the woods and on stable ground.

So what does this mean to you?

If you are a buyer - it is an excellent time to purchase based on interest rates and pricing.

If you are seller – (unless you wish to ride the uncertainty out) now is a great time to sell (relative to where we have been and are probably headed)

If you are an investor – for the first time in a long time (and we’ve been doing this since the early ‘80’s, you can buy income property in San Diego that is cash flow positive!

Agree with my position?  Great let me know your thoughts!  Disagree with my position?  Great let me know your thoughts.

Looking to take advantage of today’s market?  ….call 858-523-0523 or Contact Us.  Buying…Selling…Investing…we have you covered – Experience, knowledge and Integrity in ACTION.

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