Reason 1: Waiting for Lower Rates

Rates have trended down from roughly 7 percent to about 6.22 percent recently, and could be around 5.99 percent within a year. If you could secure a 5.99 percent rate today through a seller credit or buy-down, would you still wait?

Reason 2: Waiting for Prices to Drop

Countywide, San Diego home and condo prices have been mostly flat since 2022. Some neighborhoods and property types are up, some flat, some down. A 50 percent price drop is not realistic. Meanwhile, less competition right now means more negotiating power for you.

What Buying Now Looks Like

Example A: $10,000 Discount + Rate at 5.99%

• Purchase price negotiated down by $10,000.
• Seller credit applied to points and closing costs to achieve a 5.99 percent fixed rate.
• On an $800,000 loan at 5.99 percent for 30 years, the estimated principal and interest is about $4,791/month.
• Compared to 6.22 percent, that’s about $119/month lower, or roughly $1,400 in the first year in P&I savings alone.

Example B: $20,000 Discount or Credit

• Negotiate a $20,000 reduction or seller credit.
• Use part for a rate buy-down and part for closing costs to keep cash-to-close tight and payment lower.
• If the market improves later, you can refinance. Meanwhile, you are building equity instead of waiting on the sidelines.

Estimates are for illustration only and exclude taxes, insurance, HOA, and mortgage insurance where applicable. Always verify with a lender.

Good Reasons Not to Buy Now

1. You will not live in the home for at least 2 to 3 years.
2. You cannot qualify for financing or assemble the down payment. Note: Veterans can use VA with 0 percent down; many first-time buyers use FHA at 3.5 percent down.

Less-Good Reasons That Cost People Money

1. “I can’t find what I like.” Your taste may exceed your budget today. Start with the best available home and trade up later.
2. “I’m waiting for prices to come down.” In California, long-run appreciation has averaged well above inflation. The odds of timing a big dip are low.
3. “I don’t want an HOA.” HOAs can be practical for many buyers and typically have fewer rules than a landlord. Evaluate by community, not headlines.

How Buyers Are Winning Right Now

• Targeting properties with motivated sellers and recent reductions.
• Leveraging assumable loans in the 2 to 3 percent range when available.
• Negotiating seller credits to buy down to a 5.99 percent rate today.
• Finding off-market opportunities to avoid bidding wars.

Want a curated list tailored to your budget and neighborhoods?

Prefer payment stability and a lower rate path?

Hunting for bargains among motivated sellers?

Already own and thinking about timing, equity, or a trade-up?

Talk Through Your Options in 10 Minutes

If you are ready to start building equity while other buyers wait, call or text George at 619-846-1244. We will map a path to the lowest payment, the best terms, and the right property.

George Lorimer, ProWest Properties — DRE# 01146839. Your Home Sold Guaranteed or I’ll Buy It. Conditions apply.