The Santee real estate market is always changing, so it's important to stay up-to-date on the latest information. In this video, San Diego Realtor Kyle Whissel will take a look at what's forecast for the Santee market in 2022.

We'll discuss how rising interest rates and new development will impact the market. So if you're thinking about buying or selling in Santee within the next few years, make sure to watch this video!

What's been going on in the Santee real estate market?

With this information from the owner of Whissel Realty Group, Kyle Whissel, you’ll be able to make a decision whether you want to buy, sell, rent, invest, you can decide what's going to be best for you and for your family.

How did COVID affect things here in Santee?

Just like anywhere else in the country, initially, we all locked down. Everybody shut down. We all started to see everything start to crash. Stocks crashed, real estate started to crash, it was pretty scary for a little while there. But here we are, a couple of years later, we're coming back out of this thing. During this process, we started to see a lot of people decide, “Hey, I don't like living where I live”, or “I want a bigger house”, or “I want a pool”, or “I need an extra bedroom so I can work out of my house or to homeschool my kids.“

That’s one reason we’ve seen so many people moving over the last couple of years. We saw values in 2020, 2021, first half of 2022 going up about 2% a month, some of the craziest appreciation in home values that I've ever seen, and I've done this for almost 20 years now. So super, super crazy to see what happened. And a lot of that was driven because interest rates for mortgages were the lowest they've ever been. We saw buyers buying homes in the two and 3% range.

Everybody was buying a home. And so because rates were so low, it became very, very attractive to own a home. More often than not, it was cheaper to own a home than it was to rent a home, especially because we've seen rents increase almost as much as home values. We've seen rents increasing around 20% per year for the last couple of years, as well. So something that was maybe three grand to rent before COVID, that's four grand to rent today. It's pretty crazy how much rents have gone up.

How have the skyrocketing interest rates affected the housing market?

So a lot of people are kind of struggling right now. Well, what do I do? Do I rent, do I buy? I hear the markets getting a little crazy. Well what's happened in the last few months is inflation has shot through the roof far more than expected. That drove mortgage rates up. When mortgage rates go up, a lot of buyers get out of the game, and it starts to pull real estate values down. And so we've actually seen in the months of June, July, even in a little bit of August here, we've seen real estate values start to pull back a little bit.

But inflation's starting to look like it's under control. Some of the news coming out in early August as inflation is coming down, not only a little bit, but a lot, a lot more than what was expected. And so as a result, we're starting to see interest rates come back down a little bit. And I think as interest rates come back down, we're going to see a lot of buyers that got out of the market When the rates got too high, you're going to start to see buyers get back in the market, and decide, hey, I'm ready to go, because this renting thing is for the birds. It's so darn expensive to rent, and I don't get any tax benefits, I don't get any appreciation. I'm ready to get back in the game.

What does Kyle predict will happen to home prices & values going into 2023?

So I'm predicting what is going to happen here as we kind of round out the end of '22 is we're going to have a little bit more of a decline in values here in Q3. I think we'll start to flatten out in Q4. And as inflation continues to improve, I think rates continue to improve, and buyers get back in the game. And then by Q1 of '23, I think we're back off to the races again. And so if you're watching this video, if you're thinking, maybe I should buy that new home right now. I think you should.

I really think you should. I think there's a big opportunity right now. Because right now there's a lot of homes for sale. You can pick and choose the home that you want. You can negotiate, get the terms that you want. It's much more of a buyer's market right now. I don't think we're going to be having that same conversation come January, February, March of '23. So if you are thinking about taking advantage of this market, call or text me at the number down below. We can get you dialed in and help you make that move, whether that is stay in here in east county or whether you're looking to get out of town, either way, the team here at Whissel Realty Group would love the opportunity to make it happen. Give us call, shoot us a text. Kyle Whissel, we'll talk to you soon.

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