This Is the Sweet Spot San Marcos Homebuyers Have Been Waiting For

After a long period of high mortgage rates and affordability challenges, many prospective homebuyers in San Marcos are finally seeing an opportunity to step into the market. With mortgage rates trending downward, the current environment has created a sweet spot for buyers—but it’s a window that may not stay open for long.

If you’ve delayed your home purchase plans, here’s why you might want to reconsider and act now before the market shifts again.

Should You Buy Now or Wait?

Consider this: what do you think other buyers will do when mortgage rates drop even further?

The reality is, if mortgage rates continue to ease, more buyers will re-enter the market. A recent survey by Bankrate found that over half of homeowners would be motivated to buy if rates drop below 6%. Currently, rates are in the low 6% range, so we’re not far from reaching that point.

When mortgage rates dip into the 5% range, buyer demand will increase—and with that, competition for homes in San Marcos will intensify. This heightened competition could drive home prices upward, which may reduce some of the savings from lower interest rates.

As Nadia Evangelou, Senior Economist at the National Association of Realtors (NAR), puts it:

“The downside of increased demand is that it puts upward pressure on home prices as multiple buyers compete for a limited number of homes. In markets with ongoing housing shortages, this price increase can offset some of the affordability gains from lower mortgage rates.”

This means that waiting for rates to drop further could lead to higher home prices in San Marcos, offsetting the benefits of slightly lower mortgage rates.

Why the Current Market in San Marcos Is a Sweet Spot

Right now, there’s less competition from other buyers, which gives you a prime opportunity to find a home. As more buyers sit on the sidelines waiting for rates to fall, you have the chance to get ahead of the crowd.

Affordability has already improved, thanks to recent declines in mortgage rates. As Mike Simonsen, Founder of Altos Research, says:

“Mortgage payments on the typical-price home are 7% lower than last year and are 13% lower than the peak in May 2024.”

Additionally, San Marcos’ housing supply has increased compared to recent years. According to Realtor.com’s Senior Economist Ralph McLaughlin:

“The number of homes actively for sale continues to be elevated compared with last year, growing by 35.8%, a 10th straight month of growth, and now sits at the highest since May 2020.”

This growth means that you have more options to choose from, making it easier to find the right home in San Marcos without the fierce competition that may return when rates fall further.

The Cost of Waiting in San Marcos

If you’re holding out for the perfect time to buy, it’s essential to recognize that timing the market is almost impossible. As Greg McBride, Chief Financial Analyst at Bankrate, explains:

“It’s one of those things where you should be careful what you wish for. A further drop in mortgage rates could bring a surge of demand that makes it tougher to actually buy a house.”

Delaying your decision could lead to dealing with more competition, fewer available homes, and higher prices—all of which could outweigh the advantages of waiting for slightly lower mortgage rates.

Bottom Line

The San Marcos market is offering a rare sweet spot for buyers right now, with improved affordability, more housing inventory, and fewer competing buyers. Waiting for rates to drop further could cost you in terms of both higher home prices and increased competition. If you’re ready to take advantage of today’s market, now is the time to act.