Written by T. Logan Dayne
As inflation seems to skyrocket out of control, the housing market in San Diego is taking a hit. Less and less people are buying as the price of everything, from gas, food, and other basic commodities, increase, buyings are hesitant to put bids on homes.
Another huge factor to consider is the interest rate hike. According to Frank Powell, president elect for the San Diego association of realtors, “We’ve been telling people that the interest rates will go up, but we don’t know by how much and until it finally happens people usually don’t make a move.” Homeowners leaving California are quick to sell and cash out before interest rates rise even further. There is a lot of uncertainty in the market right now. Regarding the rising mortgage rates that have risen since the beginning of the year, Powell commented that “Well, it’s doubled so people weren’t expected that completely slowed down the market.”
Even with a small inventory of homes, the houses are not moving, even as the growth rate exceeds the houses in development.