As one of the best places to live in the nation, the seventh largest city in the United States has suffered with everyone else with the economy.
San Diego County shows favorable signs as we slowly recover from the real estate dip according to an article written in Gobankingrates.com. However, the interest rates are rising and many San Diego County residents probably want to know if this is the correct time to buy real estate.
San Diego County Housing Market in 2013
There has been a slowing of growth in the housing market of San Diego County after a stellar last year. The slowdown first arrived in September 2013 when the sales of San Diego real estate faltered to the weakest figure since 2009. Even though this is typical when progressing to the fall season, real estate experts felt that the price changes were responsible for this rise.
When 2014 began, 2013’s numbers were a lot lower. With more houses on the market, San Diego County real estate is selling for less. According to experts that spoke with gobankingrates.com, they’ve determined that interest rates are starting to creep up from 2013’s numbers.
The Forecast of San Diego County Interest Rates
Starting at 4.125 percent, California lenders are offering similar rates as the rest of the country. However, the trend of lender rates are normally higher in California than the rest of the nation.
San Diego County resident’s ability to secure a loan will impact residents due to the new rules, especially for homes being sold for under $200,000. The main concern of the government is protecting the same variables that hurt the housing market in the mid-2000s, which is administering restrictions for lenders that will effect borrowers.
New Loan Restrictions
Many consumers haven’t seen a difference in getting a mortgage, but some have assumed that the economy will get better and the restrictions will disappear. Lenders already have started enforcing the new rules. The new rules emphasize that both borrowers and lenders alike are working in a new environment.
What this means is that lenders will diligently examining the customer’s ability to make repayments and that depends on the usual standards like proof of income, credit score, personal references etc.
The largest worry of a homebuyer in San Diego County, is of banks charging fees that surpass three percent of the equity value of a home. The focus on higher value homes could be the main focus for banks according to experts referenced in the foresaid article.
Consistent Increase of Rates
The 2013 increases will continue, even though the market is temporarily slowed. Early 2013 displayed a hasty increase of home prices, and we saw a lot of homeowners that put their homes up for sale.
Home sales are slowly turning around in the early levels in 2014. As the year progresses, both interest rates and sales will continue a slight increase and the market will move back to the successful standard it had before the Great Recession in the last decade.