San Diego Real Estate Market Update - 2015 Recap and 2016 Forecast


Happy Holidays! Big news as Fed raises rates this week. 2015 price and inventory trends continue.
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Palo Verde, CA 92266
$69,800
0
sqft
0
Baths
0
Beds
Retail/bait store with lots of possibilities.
Joshua Tree, CA 92252
$1,624,850
0
sqft
0
Baths
0
Beds
Want some space?
Mecca, CA 92254
$715,000
0
sqft
0
Baths
0
Beds
Marketing Remark: The big opportunity to lease or buy no triple net.
Palm Springs, CA 92264
$3,500,000
0
sqft
0
Baths
0
Beds
'Location, Location, Location' Premier, 2 (22,000 sq.
Palm Springs, CA 92240
$325,000
0
sqft
0
Baths
0
Beds
2 lots in the North Palm Springs Business Park available for a total of 0.
Blythe, CA 92225
$138,500
0
sqft
0
Baths
0
Beds
Great space on historic Main St.
Desert Hot Springs, CA 92240
$200,000
0
sqft
0
Baths
0
Beds
Currently being used as AA meeting center.
Cathedral City, CA 92234
$649,000
0
sqft
0
Baths
0
Beds
Owner User.
Cathedral City, CA 92234
$350,000
0
sqft
0
Baths
0
Beds
Located at the highly traveled intersection of Dinah Shore & Date Palm Drive near where Cathedral City and Rancho Mirage meet.
Idyllwild, CA 92549
$1,100,000
0
sqft
0
Baths
0
Beds
Conceived, designed and constructed by Idyllwild artisans in the early 80s, The Courtyard Building, surrounded by towering native trees, offers award-winning architecture.
Perris, CA 92571
$449,000
0
sqft
0
Baths
0
Beds
What a great opportunity to purchase your own commercial property in Perris.
Desert Hot Springs, CA 92240
$1,250,000
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sqft
0
Baths
0
Beds
Probate Sale large office building used as an medical office.
Salton Sea Beach, CA 92274
$124,900
0
sqft
0
Baths
0
Beds
Salton Sea Beach Mini Storage Lockers - 3360 Cal - 12 UNIT Metal MINI Storage, approx 3120 sf metal building with 12 Storage bays this sale also comes with an extra Bonus lot.
Canoga Park, CA 91304
$36,888
0
sqft
0
Baths
0
Beds
To schedule an Open House or to request more information about this property, call Collins Coastal at (858) 252-0200.
Palm Springs, CA 92262
$1,378,000
0
sqft
0
Baths
0
Beds
Attention all Medical Professionals! Welcome to www.
Thermal, CA 92274
$1,500
0
sqft
0
Baths
0
Beds
Commercial building for Lease in the heart of the Salton City business area.
Desert Hot Springs, CA 92240
$325,000
0
sqft
0
Baths
0
Beds
This is a rare opportunity.
Thermal, CA 92274
$195,000
0
sqft
0
Baths
0
Beds
To schedule an Open House or to request more information about this property, call Collins Coastal at (858) 252-0200.
Palm Springs, CA 92262
$850,000
0
sqft
0
Baths
0
Beds
The purchase of the building is subject to and contingent on the purchase of the Practice.
Blythe, CA 92225
$685,000
0
sqft
0
Baths
0
Beds
Rare opportunity for large retail space that you can own.


​​​​​​​Transcript:

Hi everybody, John Collins, San Diego Realtor. Brining you the December market update, but really a look at , San Diego's realestate market as a whole, and then looking forward to , what we might expect. I'll also be talking about the big news, which was just yesterday the Fed, after close to a decade, just raised the interest rate for the first time in that length of time. And, what that means for buyers and sellers, we'll talk a little bit about that.

Now, has been a good year, and looking forward, is probably going to be a pretty good year as well. Values from January tonow, across San Diego County, the median price is up close to eight percent. So that's great, obviously. Now, inventory on the other hand is low, it has been low. We saw the typical increase during the busy moths of the summer but it's always been lower than normal and right now it's down about twelve percent from where it was at the beginning of the year. So that's going to continue to keep demand high, obviously, and prices, that's an upward pressure on price.

Some of the indicators going forward are good. New construction is up, largely multi-family homes, which is going to be really the future trend for homes in San Diego. But all this is good. The Fed rate increase, what they said is that they are going to now increase the interest rate from basically zero, where it's been for a long time, they're going to increase it a quarter to half a percent. Now, while that doesn't directly relate to the mortgage rate, how much it's going to go up, it's not a one for one increase, but that is an upward pressure on the mortgage rate so we'll see
how those start creeping up. Now, it's not a big increase and it's not going to create a huge difference right away, but this is a strong indicator that things are going to continue to go up over time. We've been at just crazy low rates for so long. People are used to three and a half or four percent, and really, historically, that is just so low. On a year average, seven or eight percent really is closer to the norm. And, so, while we won't be seeing that anytime
soon, I'm happy to say, it is reasonble to expect a couple of percent over the next year or two years, it's not crazy to think. That really does eat into the buying power of buyers and it creates a smaller segment of people for sellers who can afford their home, so this is an important thing to pay attention to going into .

That said, growth is anticipated to continue through . As a state, they are looking at three to four percent. Probably, that's what they're predicting. But, real estate is a cyclical thing, so it will not keep going up forever. The good news is that with this relatively slow and steady growth over time we can expect the adjustments to be a lot more palletable than what we saw in the Great Recession, which was obviously a great catastrophe.

Now, San Diego itself is a great market to be involved in. It was just identified by Realtor.com as the third hottest market in the country. Now that's based on activity and values and where they expect that to go. They're very bullish on this market for the coming year. So, that's great news.

I hope this is information that is useful to you and gives you confidence in the coming year. I know in this day and age it's hard to know what's going to happen next and the good news is that things are looking great for San Diego Real Estate in the coming year. If there are questions I can answer for you, please don't hesitate to reach out to me. Let me know. I really welcome the opportunity to help. In the mean time, I hope you have a great day, Happy Holidays, Happy New Year. Enjoy this time and this gorgeous city we live in, America's Finest City, and I'll look forward to talking to you soon. Take care.

John Collins

John Collins

DRE# 01948188
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