Okay, I’m a getting a bit tired of hearing (and talking) about our current market in San Diego. Yes, we all know it has softened, blah, blah blah. I too, have been guilty of preaching this negativity. Enough of this! Now consider the following:
1. PRICING: List prices are continuing to adjust to more reasonable levels in many more homes (we call these “Smart Seller” homes). Buyers are starting to get a sense of VALUE;
2. INTEREST RATES: The yield on the governments’ 10-Year Treasury has pulled back from it’s recent high of 5.20% to close at 5.04% today. Although having no direct correlation to mortgage rates, they do generally follow the 10-year Treasury pattern (up and down). If history is any lesson, mortgage rates should pull back a little, as well, at least in the short term;
3. TIMING: Timing IS everything! It’s the “right time of the year”. Many people who want, or need, to sell and/or buy purposely wait until the Spring/Summer timeframe.
While it’s premature to suggest that the convergence of these basic factors will result in the next boom cycle (far from it), the message here is simply one of optimism (or is it reverse negativity? – whatever). It is now officially a “buyers market”, meaning there is about six months of inventory out there. It also means that there are, inherently (one guess only)… BUYERS!
We knew they were there. They were just waiting for the right time and perception of value. For many buyers who have been sitting on the sideline, this may be the right time to pull the trigger. We are certainly starting to see buyer interest pick up, albeit in a more timid fashion than what we have been accustomed to over the past 4-5 years (I call these “The Spoiled Years”).
No, it’s not “The Housing Boom – The Sequel”, but it is reason for more optimism.