The Sky’s NOT Falling But The Market is Slowing Down
Now is the window opportunity to sell for TOP DOLLAR, before too many homes come on the market. Call George Lorimer to discuss today at 619-846-1244.
Free Download 12 Page Report: www.GLSTATS.com
In today’s real estate market, we see a drop in home buyers' demand. Mainly because it is less affordable because of increasing interest rates. Economists are used to the constant chatter about recessions, bubbles, and plunging home prices. The current economic environment has amplified the noise: surging interest rates, the highest inflation since 1981, and a volatile stock market. This will definitely have an impact on the economy and housing, yet it will not be to the extent of the fearmongering masses who immediately jump to the worst possible outcome. The sky is NOT falling when it comes to housing.Find Out What Your Home Will Sell For: www.SDHomePrice.com
Call George Lorimer at 619-846-1244
Most people remember the burn of the Great Recession. It either happened to them specifically, a family member, or a friend. There was an unstoppable wave of foreclosures and short sales. Home prices plummeted, erasing years of incredible gains. Unemployment jumped and took over six years to recover. The Great Recession was the largest economic downturn since the Great Depression, and it has left deep scars on society at large. Flash forward to today and home prices continue to soar, interest rates remain elevated above 5%, housing is just starting to slow, and many are calling for an imminent recession.
Only two of the last six recessions negatively impacted housing values here in Southern California, and both were caused by the housing industry. The savings and loan crisis of the 1980’s and early 1990’s led to a recession and an erosion in homes values that started in August 1990. One of the main reasons for the recession: unsound real estate lending practices. The Great Recession began in 2007 after the March subprime meltdown. Easy credit, pick-a-payment plan, subprime lending, zero-down loans, easy qualifying, adjustable teaser rates, and fraudulent lending all led to the largest downturn since the depression.
The San Diego County supply is at 2,648, a sharp rise from the 1,453 homes on January 1st, but still far below the 3-year average prior to COVID (2017 to 2019) for this time of year of 6,412. That is 142% more than today, more than double. Even with a 313-home climb, or 13% rise, in the past couple of weeks, it is still off by 3,764 homes. That’s a lot to make up just to get back to more normal levels. Keep in mind that the inventory levels since 2012 have been remarkably muted compared to the Great Recession and it has become even more pronounced each year.
With swiftly rising mortgage rates so far this year, demand, the prior 30-days of pending sales activity, began to slide after reaching an early peak on March 17th, when it normally rises. After initially dropping slightly, demand has stabilized and flattened in the past couple of weeks, losing only 3 pending sales. It now sits at 2,651, which is still 37% lower than the 3-year average prior to COVID, and 29% lower than last year at this time. But it is not going to plunge from here. The housing market has already digested 5% plus rates and there are still plenty of buyers looking to purchase at these higher rates. The recent rise is indicating that demand has indeed become more stable and has found its footing. See more at www.GLSTATS.com
Now is the window opportunity to sell for TOP DOLLAR, before too many homes come on the market. Call George Lorimer to discuss today at 619-846-1244.
Free Download 12 Page Report: www.GLSTATS.com
In today’s real estate market, we see a drop in home buyers' demand. Mainly because it is less affordable because of increasing interest rates. Economists are used to the constant chatter about recessions, bubbles, and plunging home prices. The current economic environment has amplified the noise: surging interest rates, the highest inflation since 1981, and a volatile stock market. This will definitely have an impact on the economy and housing, yet it will not be to the extent of the fearmongering masses who immediately jump to the worst possible outcome. The sky is NOT falling when it comes to housing.
Find Out What Your Home Will Sell For: www.SDHomePrice.com
Sell Your Home for As Low As 1%, www.EasyExitHomeSale.com
Call George Lorimer at 619-846-1244Most people remember the burn of the Great Recession. It either happened to them specifically, a family member, or a friend. There was an unstoppable wave of foreclosures and short sales. Home prices plummeted, erasing years of incredible gains. Unemployment jumped and took over six years to recover. The Great Recession was the largest economic downturn since the Great Depression, and it has left deep scars on society at large. Flash forward to today and home prices continue to soar, interest rates remain elevated above 5%, housing is just starting to slow, and many are calling for an imminent recession.
Only two of the last six recessions negatively impacted housing values here in Southern California, and both were caused by the housing industry. The savings and loan crisis of the 1980’s and early 1990’s led to a recession and an erosion in homes values that started in August 1990. One of the main reasons for the recession: unsound real estate lending practices. The Great Recession began in 2007 after the March subprime meltdown. Easy credit, pick-a-payment plan, subprime lending, zero-down loans, easy qualifying, adjustable teaser rates, and fraudulent lending all led to the largest downturn since the depression.
The San Diego County supply is at 2,648, a sharp rise from the 1,453 homes on January 1st, but still far below the 3-year average prior to COVID (2017 to 2019) for this time of year of 6,412. That is 142% more than today, more than double. Even with a 313-home climb, or 13% rise, in the past couple of weeks, it is still off by 3,764 homes. That’s a lot to make up just to get back to more normal levels. Keep in mind that the inventory levels since 2012 have been remarkably muted compared to the Great Recession and it has become even more pronounced each year.
With swiftly rising mortgage rates so far this year, demand, the prior 30-days of pending sales activity, began to slide after reaching an early peak on March 17th, when it normally rises. After initially dropping slightly, demand has stabilized and flattened in the past couple of weeks, losing only 3 pending sales. It now sits at 2,651, which is still 37% lower than the 3-year average prior to COVID, and 29% lower than last year at this time. But it is not going to plunge from here. The housing market has already digested 5% plus rates and there are still plenty of buyers looking to purchase at these higher rates. The recent rise is indicating that demand has indeed become more stable and has found its footing. See more at www.GLSTATS.com
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