In this video, San Diego Realtor Sean Setzer explores the important relationship between interest rates and real estate inventory. Understanding this relationship is critical for anyone looking to buy or sell real estate, as it can have a significant impact on the market.

He will discuss how changes in interest rates can affect inventory levels, as well as the buying and selling behavior of individuals and businesses. Additionally, He will provide some tips and strategies for navigating the real estate market during different interest rate environments.

Whether you're a seasoned real estate investor or just getting started, this video will provide valuable insights into the complex interplay between interest rates and inventory in the real estate market.

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Are you wondering if it's time to buy now or should I wait for rates to drop? So currently right now in San Diego, the big question is, you know, should I wait for rates to drop or should I buy now? A lot of the times clients are asking, you know, is it the right time to buy? And you know, basically what it comes down to at the end of the day is, is your mortgage payment comfortable for you at the price you paid for? And did you get a good deal for what you got? So I can't necessarily tell you what's going to happen with the market, but I can tell you this, that there's an incredibly low inventory rate here in San Diego. And I talk to my clients all the time and a lot of them want to wait for rates to drop. A lot of them also want prices to drop as well. So what happens is they kind of work in the opposite, right? So when rates drop, you get more buyers coming to the market and you get more bids on homes. When we have low inventory like we do, the prices tend to go up. When we have higher rates and less buyers in the market, the prices tend to be a little bit lower. So you can't really win on both sides, okay? What I can tell you is that if everyone's waiting for rates to drop, which a lot of my clients are, and they all come back in the market at the same time when rates do drop, what's going to happen with home prices? They're going to go up. We're going to get multiple offers on these homes and we're going to end up bidding each other up and up and up. We're going to have to waive appraisals. We're going to have to shorten contingencies. Some people are waiving inspections, okay? What happens then is we're now outbidding ourselves. We're going 50K, 100K over asking because we're battling with all the other buyers that came into the pool at the same time, okay? So I'm not telling you buy now, I'm not telling you to wait for interest rates to drop, but what I am telling you is if that you do wait for interest rates to drop, so is everybody else, and you might be battling a feeding frenzy, okay? So what I would suggest is if you find a home and the price is good for you, I would say get it now if you can, okay? We're able to negotiate seller credits. We're able to get the 2-1 buydown to help your rate. If you want to know more about that, let me know and I'd be happy to talk you through it. And we're able to get repairs, deal with appraisals, et cetera, okay? So if you get in now, you get the home of your dreams now at the price that you like and rates do drop in the future, you're now able to refinance, get your rate lower, and now you're sitting in the home of your dreams when you didn't have to battle 20 other offers, okay? If we wait too long, we wait for rates to drop, now everybody comes in at the same time, now we're over here outbidding ourselves. We might have to battle the appraisal, which may end up making you come out of pocket 10K, 15K, 20K to cover that appraisal gap.

So it's not always the best idea to wait for rates to drop. What the main thing that you need to do is get with a trusty negotiator like myself or someone on my team, figure out a mortgage rate that's comfortable for you, and then work with us on finding the home that fits your needs and your price range. Get in now without having to battle the masses. So what I suggest is sit down with me, we'll get a lender on board. We'll come up with a plan that the works for you.

We'll get you into the home of your dreams. And then say rates do drop down in the future, we can refinance and get you that price that you deserve. So give me a call. I'm happy to sit down and go over all your options and work out the best plan for you.

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