Is now the right time to buy one of the many San Pedro Condos for Sale?

28th June 2022

As I’m sure you know the San Pedro Real Estate Market has shifted dramatically from just a few short months ago. For some, it is a great time to buy a San Pedro Condo for Sale, whereas others are in a “wait and see” mindset. Let’s examine some of the positive as well as negative factors that are coming into play for San Pedro condo buyers:

POSITIVE

  • Inventory levels in San Pedro are up 100% since the beginning of the year. Buyers now have more Condos in San Pedro to choose from with less competition
  • Intense bidding wars are a thing of the past. Unless a San Pedro Condo for Sale boasts unique features (view lot, loads of upgrades) it typically is selling at or slightly above the list price
  • Price reductions occur now on 1 in every 3 listings. Gone are the days where a San Pedro Realtor can overprice a basic condo listing and still expect it to sell with multiple offers
  • We are seeing more San Pedro Condo Sellers be open to a credit for closing costs and or a rate buy down, to help get your rate back into the 5’s.

NEGATIVE:

  • Interest rates have nearly doubled since the beginning of the year. We went from rates in the low 3’s to the low 6’s due to the fed trying to combat record inflation
  • The average value of Condos for sale in San Pedro Ca is up almost 40% since 2020
  • The stock market has officially entered a bear market (down over 20% from the peak). This is shrinking the size of down payments which in turn makes it more difficult to quality for a mortgage
  • Overall buyer sentiment is low. A lot of people incorrectly chose to sit on the sidelines late last year when they could have bought a San Pedro condo for sale for 10-15% less with a 3% interest rate.

So is now the right time for you to buy a Condo for Sale in San Pedro? It all depends on your cash on hand, loan pre-approval amount and living situation. Rents in San Pedro continue to explode and can increase by as much as 10% a year. Whereas your mortgage on a San Pedro Condo for Sale is fixed for 30 years.

Let’s chat about your exact situation and see what makes the most sense for you. My team has sold countless Condos for Sale in San Pedro and over 600 properties in the past 15 years’ time. We have 200+ 5 star reviews across Zillow, Google, Yelp & more. Zero pressure on our end, just a review of the San Pedro Real Estate market and helping you determine what the best path forward is.