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

Homebuying Tips

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.

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Complaints prompt Carlsbad to remove traffic circles City will install all-way stop signs instead of roundabouts at two Kelly Drive intersections A vehicle maneuvers through the traffic circle at Park Drive and Kelly Drive in this view looking north up Kelly Drive. Above left is Laguna Riviera City Park, behind it is Kelly Elementary School. (Charlie Neuman/For The San Diego Union-Tribune) A vehicle maneuvers through the traffic circle at Park Drive and Kelly Drive in this view looking north up Kelly Drive. Above left is Laguna Riviera City Park, behind it is Kelly Elementary School. (Charlie Neuman/For The San Diego Union-Tribune) By PHIL DIEHL | [email protected] | The San Diego Union-Tribune UPDATED: June 20, 2025 at 6:15 AM PDT Carlsbad’s City Council voted unanimously Tuesday to remove two traffic circles, or small roundabouts, that residents said were “a failed experiment” installed in 2013 as a pilot project. Homeowners near the traffic circles at two intersections on Kelly Drive said the traffic circles encourage speeding and create a safety hazard for children walking to the nearby Kelly Elementary School. “It is a mess, truly a mess,” said Sheila O’Neill, who volunteers as a crossing guard at the school. “The roundabout nudges cars closer to the crosswalk and kids crossing the street … all-way stops would be great. It would make next year so much better.” Traffic circles are different from roundabouts, although the terms often are used interchangeably. Traffic circles require less space and generally are placed in residential areas. Roundabouts are larger, sometimes with landscaping, usually have pedestrian crosswalks set back from the intersection, and are installed on busier streets and thoroughfares. Carlsbad approved the interim traffic circles for two intersections on Kelly Drive — at each side of Kelly Elementary School — one at Park Drive and the other at Hillside Drive. Each one is essentially a circle of small ceramic bumps or domes on the asphalt at the center of the intersection for vehicles to drive around. The bumps are small enough that cars can drive over without damage. “This was a well-intentioned experiment, but it’s time to acknowledge its failure,” said Steve Linke, a resident and former member of the city’s Traffic Safety and Mobility Commission. Council members agreed with the speakers. One of the options presented to the council was to proceed with a final design, environmental studies and permits for roundabouts to replace the Kelly Drive traffic circles. Instead, the council voted to remove the traffic circles, resurface the roadway with a slurry seal, and install all-way stop signs. Also, the council directed city staffers to consider the costs and benefits of other possible improvements such as bike lanes, crosswalks and curb ramps, and bring that information back at a future meeting. “It’s a good opportunity to step back, catch our breath and listen to what our residents are saying,” said Councilmember Keven Shin. “I feel like an all-way stop would create a lot of safety for the kids.” Teenagers on e-bikes ride south on Kelly Drive approaching the traffic circle at Hillside Drive, shown at right, where underground pipeline work continue in the middle of the circle. At right is the east end of Hillside Drive. (Charlie Neuman / For The San Diego Union-Tribune) Teenagers on e-bikes ride south on Kelly Drive approaching the traffic circle at Hillside Drive, at right, where underground pipeline work is underway in the middle of the circle. At right is the east end of Hillside Drive. (Charlie Neuman/For The San Diego Union-Tribune) Earlier this year, the City Council hit the brakes on the long-planned installation of a roundabout to replace the traffic signals at the beachfront intersection of Tamarack Avenue and Carlsbad Boulevard. That project also faced widespread community opposition. And the council has said that sometime soon it will reconsider a still unbuilt roundabout that it approved in 2023 for the intersection of Cannon Road and Carlsbad Boulevard. Roundabouts and traffic circles are elements of a “complete streets” program that Carlsbad has been working on for several years. The program’s goal is to prioritize safety for everyone on the roads, whether they are driving, walking or biking. In March the City Council approved five traffic circles to be installed at intersections in the older downtown Barrio neighborhood starting in 2026. Barrio residents generally supported the installations because they are expected to help control traffic and reduce speeding. The city obtained about $4 million in federal funding for the Barrio traffic circles. Originally Published: June 19, 2025 at 7:50 AM PDT

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