A real estate market in an election year with higher interest rates and low inventory? It’s like navigating a busy intersection during rush hour — lots going on, everyone trying to find their best route forward.
With interest rates up, it’s a bit like tightening the belt on borrowing. Buyers feel the pinch as mortgages become pricier, which can cool down the pace of transactions. On the flip side, low inventory means there’s not much to choose from, creating this interesting tug-of-war where sellers might hold more cards despite the rates.
Then you add in the election buzz. People tend to hold off on big decisions when they’re not sure which way the wind’s blowing, right? Uncertainty about policies and how they might shake things up can make buyers and sellers a bit cautious, sometimes leading to a bit of a wait-and-see game.
Economists say it’s time for a rate decrease by the Fed, but in an election year no one wants to be accused of influencing anything. Most believe the Fed will wait for their meeting the day after the election to make changes.
Will this unclog the system? Only time will tell.
If you are ready for a move, make sure you a local real estate professional to help you navigate through the unique aspects of Ramona property. You can find them at RREA.org. Shop Local! Happy 4th of July!!
Domnitz is vice president of the Ramona Real Estate Association and a Realtor with Century 21 d, DRE#00897503
