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November, | VOLUME 8 | ISSUE 11 A Publication of Local Umbrella Media | VOLUME2023 9 October-November 2023
BROKERS CORNER
RAY SHAY BROKER I OWNER DRE 01946504
“Spooked by the Housing Market?”
At the start of this year, some of the top financial advisors in the nation predicted at least a 12% drop in the values of our homes in San Diego County. At the time, I disagreed and wrote in this paper that I believed they were wrong. Since then, the housing market has shifted, with consistently increasing home values and reduced market time. Lately, I have heard more of the same nervous talk and a sense of doom among both buyers and sellers. I hope this helps put you at ease. I encourage people to research the market and meet with their financial experts, and carefully evaluate their strategies before making any financial decisions. I have never taken a financial planning course but slept at a Holiday Inn Express last night.
THE HOUSING MARKET IS CRASHING
The value of homes in San Diego County has continued to increase over the last twelve months. This is despite the average home interest rate doubling from the low 3% to as much as over 7%. If inflation eases and interest rates lower there will likely be an additional run-up in home values
NO HOMES ARE AVAILABLE
Home Inventory is low, and this situation is further exacerbated by some agents that, for various reasons, do not fully expose their client’s home on the open market. It can be very frustrating to potential buyers to see a home advertised as “coming soon,” only for the listing agent to double end the deal within their brokerage and cancel the open house. More deals are occurring off market than ever before. But to many of our clients’ surprise, there is some new home inventory in the surrounding communities, including Poway and San Marcos. A few home builders are not offering REALTORS commissions, while others are starting to. We don’t worry if the builder is offering a commission to our agents, as our duty, above all else, is to serve our clients.
Our team has had a busy few months representing buyers and sellers. As I look back on the past year, the increasing values and reduced home inventory have definitely impacted the local housing market.
I advise selecting an agent you have faith in and working diligently with them so they understand what you are looking for and how much you are willing to spend. Combining this with a fully underwritten loan approval gives you the necessary tools to be successful.
QUALCOMM IS LAYING OFF
I know the headline is scary, and to many of you in our community Despite these changing dynamics, we have had home sellwho recently received ers enter escrow above appraised value with multiple offers termination notices, I as recently as last week. We have also helped investors and sincerely wish you the best in these challenging times. home buyers purchase homes and investment properties well below their advertised value. First, let me say that I Qualcomm. We raised our family here in 4S Ranch, which has the affectionIn addition to fewer people buying and selling, I worry ate nickname, “Qualcomm Ranch.” In addition about many REALTORS © who have had their slowest to providing very high-paying jobs and excellent year in a long time, with many of them considering leavemployee benefits, Qualcomm is one of those rare ing our industry. California’s licensed realtors have expecompanies that constantly pursues innovation. I rienced a substantial drop in membership over the last believe their success is primarily due to their cultwelve months. ture, not hesitating to take risks and the countless hours their dedicated employees have spent tireI thought it would be helpful to address a few of the islessly pushing the envelope. sues people seem most concerned about. LOCAL NEWS | LocalUmbrellaNews.com
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