October 24, 2024

San Diego real estate market bottom? Seems all the media outlets are announcing the bottom, or “about to occur real estate market bottom.” Naturally, being a real estate broker, I hope the media ‘talking heads’ are correct, but I have reservations.

home mortgage interest rate resets
home mortgage interest rate resets

First, look at the cart above, showing the number of adjustable loans due to have their interest rate reset. Currently, with interest rates low,the actual reset may not be the real worrisome point. I think the adjustment process will be an awakening point to many San Diego homeowners that their mortgage balance is now actually greater than the current resale value of their home.

How many may just decide that instead of making mortgage payments that are not building any equity, and may be much higher than renting a similar home, that it would be best to walk away?

Another important question is how can the San Diego real estate market bottom while unemployment is still rising?    San Diego real estate listings

4 thoughts on “Real Estate Market Bottom or Wishful Thinking?

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