We have surprisingly found ourselves in a hot real estate market this month!
I mentioned previously that real estate prices aren’t likely to be affected in the short term due to everything that’s been happening. Sure enough, as of last month we had about 1.6 months worth of inventory. This is really low by national standards as you’re supposed to have around 6 months worth to inventory to be considered a healthy market. This low inventory creates a sellers market situation where prices will most likely go up, at minimum they will stay the same.
We’ve had 11,984 homes come to the market across San Diego County, this is a great sign as we need the inventory. However, out of these around 9,000+ homes have already gone off the market so there’s only about 2,000 homes left on the market and increasing our total inventory level. This will offer only a minimal boost to our inventory, bumping it up to around 1.8 months which is definitely inadequate to affect prices.
The monthly stats for showings of properties were sure enough some of the lowest figures seen for March and April. This was expected as we were not allowed to get out and show properties. In May however, this figure almost bounced right back to where it was in February! Buyers are now viewing inventory and things are starting to move.
What do we have to worry about?
There is a rise in the number of delinquencies we’re getting on mortgage payments. In March, we saw delinquency rates of 3%, this increased in April to around 6.4% percent and finally in May it rose to 8%. However, the Federal Housing Agency just came out with the forbearance guidelines. This allows affected homeowners to postpone their payments allowing them to tack them on to the end of their loan. Alternatively, if they wish to refinance or sell their home, they can just pay it out from the proceeds of the house. With this in mind, I don’t anticipate any flood of foreclosures coming to the market anytime soon.
My advice for you
As a seller, fix up your home before selling it. Take advantage of our remodeling services which we can remodel your home with no upfront costs. People are looking for a move-in product and those homes are remodeled are selling at a premium!
As a buyer, take advantage of the current interest rates. It’s going to be competitive out there but if you can lock in a great interest rate, it’s going to pay off in the long run and keep your payments low. It’s unlikely we will see such low interest rates again anytime soon.
- If you are thinking about buying or selling we would love to help!
- See why you should hire us on TrueLocalRealty.com
- Or give us a call at 888-503-3117