Let me take just a moment to wish all of you a New Year blessed with peace, happiness and productivity.

As the year begins, we are off to wild weather and the real estate market seems to be mirroring the weather in more ways than one. Just as there are microclimates in the weather, there are the same microclimates in real estate. We are blessed with our own micro economy here in the San Diego area. That also means that the economic climate here doesn’t necessarily reflect the same issues as the national housing numbers you read in the news.

I’ve committed to providing you with Local News relevant to where we live specifically this year. The one thing I know for certain is that numbers never lie, but they don’t tell the whole story either. There are several reasons you may want or need to buy or sell real estate this year. Remember that whenever there is change there is opportunity depending on one’s circumstances.

Don’t panic, don’t listen to the National rumor mill, and for heaven’s sake don’t try to second guess the Federal Reserve! Even talented scientific economists can’t seem to predict what the Federal Reserve members think or will do until they do it, how can we?

To that end, here’s the local numbers on Escondido, divided into 4 microclimates geographically. I could get even more granular, but it would make your head spin as it sometimes does with mine.

In a nutshell, we are expecting likely two more interest rate increases by the Fed, rates will creep up and then settle back down to where borrowers will still borrow (which seems to be at 7% or just under). Days on the market are increasing but inventory is still low.

Everyone is predicting a market correction but in general they seem to think that it will be in the 5% to 7% range this year. Remember this that as of January 2023 the new loan limit for FHA mortgages for properties in San Diego County is $977,500. This is $97,750 higher than 2022 limit of $879,750, to keep pace with home prices.

Stop thinking about what everyone else is trying to predict. Look at your circumstances; what do you want, what do you need, what can you afford? I’m not saying to ignore the prognostications and numbers, just put them in your personal perspective, look through your glasses and not everyone else’s. If there are needs or opportunities for you with these changes, check it out, make informed decisions and do what’s best for you.

I hope this helps your local and personal perspectives.

Sincerely, Kay Bates

Last Week's Poll Results: "What Do You Feel Is The Biggest Issue Facing The City In 2023?"