1) Mortgage rates jump back above 7% and stay there.
Higher rates crush affordability and slow demand.
2) Inventory doubles — with distressed sellers cutting hard.
Foreclosures. Panic listings. Forced sales.
More supply + weaker demand = price pressure.
That’s the formula.
Do I See That Right Now?
No.
Here’s why:
• Most owners have 2–4% loans.
• We don’t have a foreclosure wave.
• Inventory is still controlled.
• 40% of homes in the U.S. are owned outright.
• 76% of homes with a loan have over 40% equity.
What we do have is a split market:
• Some homes sell in 5 days.
• Others sit 100+ days.
• Some buyers get into bidding wars.
• Others negotiate serious discounts. See San Diego Market Stats
This isn’t a crash market. It is a normal market where you need a good strategy to win.
Where It’s Hot vs Cold
If you’re buying or selling, neighborhood matters more than headlines.
We would like to hear from you! If you have any questions, please do not hesitate to contact us. We are always looking forward to hearing from you! We will do our best to reply to you within 24 hours !
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