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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Cathedral City, CA 92234
$159,000
1368
sqft
2
Baths
2
Beds
This home is total move in ready.
Spring Valley, CA 91978
$175,000
1800
sqft
2
Baths
3
Beds
Spacious Rancho San Diego area home with 3 bedrooms plus a den that could be an optional 4th bedroom or home office.
Los Osos, CA 93402
$729,900
1377
sqft
2
Baths
2
Beds
Bohemian style home resting on a rare 75 X 125 sq.
Los Angeles, CA 90018
$1,349,000
2134
sqft
2
Baths
3
Beds
Step into this Contemporary Spanish Revival you will first notice the expansiveness of the layout.
San Diego, CA 92126
$359,900
572
sqft
1
Baths
1
Beds
Freshly remodeled downstairs condo in Capricorn Villas - central Mira Mesa.
Glendale, CA 91203
$549,000
1215
sqft
2
Baths
2
Beds
Desirable front 1st.
Temecula, CA 92592
$749,000
2916
sqft
3
Baths
5
Beds
A Gorgeous Remodeled Family Home with an AMAZING VIEW of the Mountains and City Lights, In the highly desired Redhawk Community.
Carmel-by-the-Sea, CA 93921
$1,350,000
1060
sqft
2
Baths
2
Beds
Carmel-by-the-Sea charming cottage is ready for a new owner.
Rancho Mirage, CA 92270
$1,097,000
3271
sqft
3
Baths
2
Beds
This beautiful modified and expanded Augusta home is located in the stunning community of Morningside, in the heart of Rancho Mirage.
Hacienda Heights, CA 91745
$597,000
1100
sqft
1
Baths
3
Beds
Welcome to 15140 Clark Avenue, this wonderful single story home features 3 bedrooms and 1 bathroom with an excellent curb appeal.
Bakersfield, CA 93312
$289,000
1292
sqft
1
Baths
4
Beds
Welcome home to your forever home!! Quaint, cute home features 1,292 square feet and has 4 bedrooms and 1 bathroom.
Los Angeles, CA 90049
$12,900,000
7692
sqft
6
Baths
5
Beds
Located inside the coveted, guard-gated Bel-Air community of Moraga Estates and set on a sprawling approx.
Palm Desert, CA 92211
$349,000
1291
sqft
2
Baths
2
Beds
Lovely two bedroom two bath, one story condo in the delighful community of Desert Breezes that so rarely come on the market.
Compton, CA 90220
$550,000
1114
sqft
1
Baths
3
Beds
Awesome corner lot property on a cul-de-sac! Freshly painted 3 bedrooms 1 bath property.
Menifee, CA 92584
$675,000
3284
sqft
3
Baths
5
Beds
This home is located at the top of Menifee's Audie Murphy Ranch at the entrance to a Cul De Sac; a very quiet and peaceful location with no rear neighbors and very little traffic.
Stanton, CA 90680
$525,000
1348
sqft
2
Baths
4
Beds
This move-in ready 4 bedrooms and 2 bathrooms townhome is located in the desirable Sunshine Village community.
Escondido, CA 92027
$214,999
1325
sqft
2
Baths
3
Beds
This beautiful home was built in 2017 by Pacific Manufactured Homes nestled in Lake Wohlford with a beautiful lake view.
Desert Hot Springs, CA 92240
$65,000
720
sqft
2
Baths
2
Beds
Welcome to Skys Haven, a 55+ senior community.
Fullerton, CA 92835
$319,000
0
sqft
2
Baths
2
Beds
Run don't walk to this incredible opportunity! 2 bed 1 1/2 bath home in Highly Sought after Cedarhill.
Irvine, CA 92620
$1,379,900
2324
sqft
3
Baths
4
Beds
A beautiful 4-bed, 3-bath single-family residence built by Brookfield Homes in Woodbury's tranquil Montecito tract.


​​​​​​​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
Inquire Now
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