That fence has been getting pretty heavy. There's been lots of buyers on it for some time now and there's no reason in this Encinitas Realtor's opinion, not to think about buying a home now that the Federal Reserve has cut the interest rates by a half point. Pardon me for saying it but, thanks to the Fed for doing something! It's a move we'll watch observantly because of how it was done. This type of cut is more for helping credit card and home equity line of credit borrowers who's rate is tied to this type of cut. Mortgage interest rates are tied to the bond market. When it goes up rates go down.
I had an open house at my single story 1800sf super fixed up listing in South Encinitas on Sunday and no less than 18 sets of buyers showed up. It's a range price of $679,000 to $739,000 (yes we have ranges in San Diego). I've never been more slammed trying to answer questions and meet everyone. I kept asking and trying to figure out why so many people were there and after talking to many of them discovered they believed the market was about to turn. Hey, I knew something might happen if the Fed dropped rates 1/4 point but SURPRISE (it's your birthday!) have one of these 1/2 point cupcakes. If anything's going to do it it's a lowering of interest rates and it will certainly help reduce inventory here in North County San Diego and help buyers get off the fence and start looking again.
We're a bit inventory deficient with single stories right now and I've got two of them (one with fabulous lagoon view in Aviara) that's about to come up and one in Encinitas with hand pounded copper sinks, new travertine, Hans Grohe faucets, new kitchen and baths. The sub-prime crisis has eliminated 1/3 of the buyer pool and it's been a tooth and nail battle with every listing fighting it out for market positioning. If the interest rates bring out the buyers and the inventory begins to decrease we might have some balance, something we've not had here in San Diego for quite some time. I'll let you know what next weeks open houses bring.
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