Current Market Trends in Temecula
Filed under: Mortgage Rates
Today, I’m talking about the current real estate market trends that are happening here in our local valley. It’s been a wild ride the last few years. Honestly, I’ve never seen a market quite like this one – and I’ve been licensed for well over 20 years.
What we have right now is a market that has resilient pricing. This means that prices don’t want to fall very much, even though interest rates have really increased.
Looking back, when rates were at their lowest point, we were in the high 2% range. We reached all the way up to over 8% rates, making it much more expensive to finance a home. Recently, we’ve dipped back down a little bit in terms of interest rates, but overall, the rates are still high compared to where we were a few years ago.
Housing Prices Remain High
This is quite a spread in interest rates in the last few years! But even though rates have changed so much, housing prices haven’t really reflected that change. Why is this happening?
The answer: low inventory. We just don’t have many homes to sell. And there aren’t that many homes coming on the market to list for sale either. So, the low inventory has really created the scenario where prices haven’t really fallen, even though rates have risen quite fast.
It’s a matter of supply and demand, which can make it even more challenging for buyers who are trying to step into the market.
My Concerns About the Real Estate Market
What is concerning me about the near future: if rates do dip down, we might be back into a seller’s market again. At that point, sellers can really dominate and dictate the terms of the real estate market simply because we don’t have enough homes to sell.
Do You Have Questions About the Local Real Estate Market?
If you have any questions about inventory or what the Temecula real estate market is doing right now, I would love to talk to you about it. Call, text, or email me any time. I am always here to share personalized recommendations and assist with your real estate needs: (951) 473-0390 or [email protected]