In this video, San Diego Realtor Kyle Whissel will help you learn the basics of why it makes sense to buy in a declining market. You'll also learn about some of the key indicators that can help you predict when a market is about to turn. By understanding these concepts, you'll be able to make more informed real estate decisions and protect your investment!

Why does it make sense to buy a home in a declining market? My name is Kyle Whissel with Whissel Realty Group and today I'm going to share with you some knowledge, some information that you probably are wondering like, "Is he crazy? What the hell is he talking about?" Well, here's what I'm talking about. We are in a declining market right now in San Diego, values have declined 10% plus, in some markets, 15, 20% across San Diego County. And so you're thinking to yourself, "Why the hell would I want to buy when I know that values are going down?"

Because I'm going to shoot straight with you, we're not done going down, we're going to go down a little bit further but here's why it makes sense to buy a home in this market. Nobody else is buying right now. The market is declining because interest rates shot through the roof. We were looking at 3% interest rates earlier in the year, now we're looking at six or 7% interest rates. That's caused a lot of buyers to get out of the market and that's what's caused values to decline. Well, here's what I can tell you, I've got a degree in economics, I've done this for 20 years, interest rates are coming down and they're going to come down very, very quickly.

I'm recording this video in the middle of November, rates just dipped below 7%, they dipped below 7% because CPI just dipped. Well, CPI dipped this month, it's going to dip next month, it's going to dip the month after that, and the month after, and the month after that and the month after that and after that, blah, blah, blah, it's going to keep going down. Well, mortgage rates follow inflation rates. So as inflation or CPI continues to dip, mortgage rates are going to dip. Well, guess what happens when mortgage rates dip? All those buyers who checked out and aren't buying homes right now, are going to get back in the game. It's going to get very, very competitive again when those mortgage rates come down. So do you want to wait for mortgage rates to come down?

In your head, you're probably like, "Yeah, I'm going to wait 'cause it's going to be cheaper." But keep in mind, when it gets cheaper, the competition is going to come back. Well, here's what our buyers six months ago were looking at, is you had to write an offer on a home, half the time you had to write the offer site unseen, you never even got to look at the freaking home, you had to write an offer substantially above the list price, also substantially above what the home was actually worth, you had little to no contingencies, you had no room to negotiate repairs, it was a pretty rough experience. In today's market, while all those buyers are on the sidelines waiting for rates to drop, you get to come in, you get to pick the home you want, in the neighborhood you want, with the terms you want, you get to negotiate the way that you want, and you get to enjoy the experience.

And then here's what's great, the rates are going to come back down. So you're going to get the home you want, yeah, you're going to take a higher rate right now, you're going to deal with it for a little while, the values are going to decline a little bit, you're going to deal with that, that's okay. But what's going to happen is the rates are going to come down, when the rates come down, all the buyers are going to come back and the values are going to increase again, and you're going to refinance and you're going to love life because you're in the home that you want.

You're not going to overpay for it, you're not going to have a horrible buying experience where the seller gets to control everything that you do, you have the control right now, this is an opportunity for you to take advantage of it, while everybody else is on the sideline, this is your chance to get in the game and take advantage of it. If you want to take advantage of this market, give us call, shoot us a text at the number down below, my team would love to talk to you more about making that happen. I'm Kyle Whissel with Whissel Realty Group.

San Diego Featured Listings

See More Listings

See More Listings