What a summer it has been here in San Diego! Buyer demand remains the bright spot in the housing market as low interest rates and a slowly healing economy continue to drive this market up. Inventory remains the biggest obstacle as supply cannot keep up with demand.
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As the phase 2 reopening entered its second month in California, the recovery is proceeding at a cautious pace. While the rebound in the economy is uneven, the housing market continues to exhibit strength and remains one of the most promising sectors, poised to lead the economy forward. Despite home sales declining more than 30 percent in both April and May, the surge in recent market activity fueled by record low mortgage rates suggest that the market will recover some ground in the coming months.
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Coronavirus, COVID-19 or the "Rona" are all words we have heard repeatedly throughout the last weeks / months accompanied by terms like "shelter in place" and "social distancing". What does all of this mean as it pertains to the real estate market can be summed up in one word "CHANGE".
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The coronavirus, stock market turmoil, and mortgage rates are all topics of discussion circulating our local and world news. As coronavirus fears hit financial markets, U.S. bond yields are tanking, pushing mortgage rates that loosely follow the 10-year Treasury yield toward an eight-year low. Rates today with strong financials and credit scores are between 3.25% and 3.5% for a 30 year fixed mortgage.
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All signs point to a healthy real estate market in San Diego county for 2020. Strong job market and low mortgage interest rates should help keep the market stocked with qualified home buyers.
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