For qualified buyers, low interest rates yield increased access to high-end San Diego real estate


By John Lefferdink

When professional golfer Phil Mickelson put his $7 million Rancho Santa Fe home on the market late last month, the average buyer probably didn’t bat an eyelash – not because the estate isn’t stunning, but because it’s price tag is simply too high for most buyers looking for homes along San Diego’s north coast. Then again, if Mickelson’s mansion is out of reach for these buyers, historically

low interest rates

many soon land other high-end listings within their grasp. According to a recent

ABC News

report, the average interest rate on a 30-year mortgage is down to 3.75%. Combined with reduced home prices and relaxed Federal requirements for first-time buyers, these incredibly low interest rates are making it easier than ever before for qualified individuals to set their sights a bit higher -- and to consider purchasing the home of their dreams in a safe, secure and desirable San Diego community.

Buying a home is a major investment – and one that is only partially determined by the property in question itself. When choosing where to settle down for the long haul, buyers must take into consideration not only the look, feel, layout and amenities of their prospective home, but also those of the surrounding neighborhood. Proximity to work, school, retail and entertainment venues, as well as San Diego’s famous beaches and inland recreation areas, are all prime considerations; and because low interest rates broaden the scope of homes in a given buyer’s price range, current buying conditions make it possible for individuals and families to get more for their money than ever before.

For example, when average interest rates are at 6%, a typical buyer can afford to spend as much as $677,000 on a home; in contrast, now that rates are hovering at or below 4%, that same buyer can suddenly qualify to purchase an $850,000 home – one that may bring with it the opportunity for better schools, safer neighborhoods, and a greater return on investment for the future. In other words, current interest rates increase buyers’ affordability margin by as much as 20%. But there’s also a catch: low interest rates and reduced property prices won’t last forever -- and with high-end homes suddenly within their reach, buyers have a limited time during which to take advantage of fleeting real estate market trends and realize their dreams of home ownership.

Capitalize on the buyer’s market with guidance from a local real estate expert

A $7 million estate may still be too much for most individuals and families looking to make the most of current real estate trends; but with help from a

North County coastal real estate

expert, buyers can navigate the more modest yet undeniably affluent properties on offer throughout the communities of Rancho Santa Fe, Del Mar, Carlsbad, Cardiff, Encinitas and Oceanside. If you or someone you know is considering purchasing a home, don’t wait to begin the search: contact

John Lefferdink & Associates

at Prudential California Realty today and let our talented team of brokers and agents guide you through the best that San Diego real estate has to offer. For more information, call 858-756-8098 or visit us online: