This week we're revisiting residential real estate expert Kay Bates, who explains why it is often either a good time or bad time to buy real estate.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Is this a good time to buy or sell Real Estate?
The answer is, Yes and NO, it depends! There is no right or wrong answers, as each
individual’s situation differs.
As a buyer, should I buy now? Maybe. It depends on your circumstances. If you must be in the
office or on-site for work and live in commutable distance but can’t qualify at current interest rates, then the answer is an obvious NO!
However, as we are aware rents are higher than they have been in years, and this could be a
motivation for buying. Yes, interest rates are higher than they have been in years, however, with the right strategies homeownership can still be accomplished. I’m sure you have heard that corporations are purchasing available homes and charging unprecedented rental rates.
On the other hand, a resounding YES! Another opportunity for buyers may exist in other parts of California. California has 58 Counties, and there are homes in other counties much lower prices than San Diego County with high rents, enough to cover your mortgage if you’re looking to invest or can work remotely.
I’ve found areas for several of my clients that have growing stable communities, lower sales prices, and high rental market and great property management service. You can still be a homeowner, collect rent, and have a real estate portfolio that hedges against inflation. It’s a great time to invest in Real Estate.
As a seller, should I sell now? It depends on your circumstances. Currently the inventory is very low and home prices are where they were in 2022 or even higher in some price ranges! We all
know that lack of supply coupled with demand means prices will go up.
If your circumstances involve a divorce, death, needed downsizing, job relocation or a life altering circumstances this is a great market for you as a Seller. Depending on the property, the number of days the property stays on the market is very low due to the lack of inventory.
As we enter fall, the market appears slower, however, this is a great time to attract serious buyers. Fall and winter are often called slower times for real estate, but it isn’t true. Due to the
low inventory, I would sell my home today if I were a seller!
Then again, If I’m sitting in a comfortable home with no life altering circumstances and an existing interest rate on my home loan of under 3.5%, NO! Now I might consider borrowing against my equity and investing, but I wouldn’t sell right now.
In San Diego County there are not any homes available under $500,000. According to one data source, the median sales price in Escondido in July 2023 was $750,000 up 2% from last year and the time on the market was a mere 10 days. This is a strong indication that we are in a seller’s market.
If you are on the fence about selling your home, please reach out to your local Realtor. Have
the conversation. Everyone’s circumstances are different. So, Yes! No! And Maybe.
