If there is one thing that is certain about real estate, it is that it is ever-changing. With the New Year, we are already seeing some shifts in the housing market. If you’ve been thinking of buying a home in San Diego, 2019 is the year to take the next step – it’s definitely a great time to buy! Here’s why:
We’re Heading Towards a Buyer’s Market
Since August, experts have predicted that after years of a seller’s market, we are beginning to shift in favor of prospective homebuyers. Many areas around the country have merely hit a tipping point where buyers are either unable to or unwilling to pay the prices sellers are asking. Which has resulted in homes staying on the market longer and some sellers slashing their asking price to get their property into escrow. Though home prices in San Diego County are still up 6.2% from last year, home price growth is predicted to slow over the next year as buyers gain more bargaining power.
There’s More Available Inventory
After years of low inventory conditions, buyers are starting to get some relief finally. Homes are spending more time on the market (the average for San Diego County is 34 days) and many sellers, perhaps sensing the change in the market, are in a hurry to put their home up for sale. Both these things work to your advantage as a home buyer. While inventory hasn’t yet increased dramatically, in the months to come buyers should have a bit more to choose from across all price points including at the low end. With home prices higher than they have been in recent years, many prospective investors are looking outside San Diego to make their purchases – which is good news if you’re a first-time homebuyer.
Interest Rates Are Still Low
Despite planned rate hikes by the Federal Reserve this year, interest rates are still comparatively low. You can check out today’s rate on Bankrate.com here, but as of writing, the average interest rate for a 30-year fixed loan was only 4.5%. With more planned rate hikes on the way, these low-interest rates won’t last forever. As interest rates rise, they affect how much home you can afford. For more on how interest rates change affordability, click here. In a market like San Diego’s, buyers need all the help they can get!
San Diego County Has Higher Loan Limits for 2019
If you’re planning to take out a mortgage to buy a home, you should know that FHA and conforming loan limits have been raised for San Diego County in 2019. The new loan limit for 2019 is $690,000 for a single-family home, townhome, or condo. Again, this is excellent news for homebuyers as it raises the upper limit for a “standard” loan. If you need to take out a loan for more than $690,000, you would be looking at what’s called a jumbo loan which will have its own qualifications as these loans are viewed as a bit riskier for the bank. By raising the FHA and conforming loan limits, more buyers will be able to buy without having to also qualify for a jumbo loan.
If you have any questions about buying a home or selling your current one, please don’t hesitate to call! This is the year to buy the San Diego home of your dreams!
(All San Diego County housing stats were sourced from CRMLS Infosparks data on February 2nd, 2019)