The average home prices just hit a record high in San Diego County.
The pandemic has pushed mortgage rates to an all-time low and now there’s a pool of buyers but not enough homes and it’s causing stiff competition and frustrating first-time home buyers.
CoreLogic data provided by DQNews reported in June the average median price for a home was $600,000, a record high for San Diego County.
“It’s unbelievable. We didn't see this coming,” said Alan Shafran with Shafran Realty Group.
Shafran is a well-known real estate agent in North County and calls the housing market “COVID timing where all the rules are gone.”
“There definitely is frustration and growth. We are learning and trying to help, guide and educate as fast as we can and eliminate stress and it’s not easy,” said Shafran.
With mortgage rates at an all-time low, 3.16% for a 30-year fixed-rate, there are plenty of buyers in a sellers’ market but not enough inventory. Agents said sellers are sheltering in place and not listing their homes and houses are not being built.
There are also potential buyers writing cover letters to try and convince sellers to choose them to buy their home.
“The amount of competition right now is puzzling,” said Shafran.
To get a pulse on the market, News 8 went to social media where many followers commented on Facebook.
"It was very frustrating. Houses were on the market Thursday. By Sunday they were gone. That's how bad it is looking for a home now. Took us 8 tries to land one,” said Tommy.
Karen said, "I wish we could to purchase a house, condo, townhome, something of our own. However, as much as I love our city, IDK if it’s the right long-term plan us."
Shafran said many who are selling are retirees and there has been a new spike of people moving out of state.
“Waiting for college student to graduate. Hope the market holds. We'll be moving out of California ASAP,” a user named John wrote on Facebook.
Shafran suggests if you’re house hunting in this competitive market you must be ready to act fast.
“In spite of COVID and the challenges, people are still achieving their goals so continue to look personally to achieve what your plan is,” said Shafran.
He suggests being prepared by having your financials ready, making sure your lender is making weekly adjustments and communicating and strategizing with your real estate agent.