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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Indio, CA 92201
$1,502,000
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The Coachella and Stagecoach music festivals have put Indio back on the map, making Downtown Indio's future all the brighter! Here is a chance for visionaries to get in early and be a part of it! ...
Cathedral City, CA 92234
$1,150,000
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Located in the heart of Cathedral City this Industrial use building is in the 'Green' zone and welcomes a new owner.
Idyllwild, CA 92549
$2,495,000
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Own your very own Bed and Breakfast inn located in Idyllwild California.
Blythe, CA 92225
$550,000
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This building is a legendary and iconic establishment.
Desert Hot Springs, CA 92240
$1,488,000
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ARENA BLANCA SPRINGS Resort , High up in the Hacienda Heights Spa Zone , sits a prestigious,, preeminent, pictorial , prominent,pronounced property.
Blythe, CA 92225
$144,800
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Want to grow Cannabis now.
Blythe, CA 92225
$144,800
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sqft
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Want to grow Cannabis now.
Thermal, CA 92274
$75,000
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Excellent opportunity water mater and sewer connected to the property electrical post with transformer right in front of the property.
Palm Desert, CA 92260
$4,153,000
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Well located two-story professional building on nearly an acre.
Palm Springs, CA 92262
$5,200,000
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Exceptional location and Immaculately maintained commercial buildings in the heart of the Palm Springs Uptown District.
Palm Desert, CA 92260
$919,000
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Beautiful, renovated upscale general & cosmetic dental stand alone office building with private parking for sale or lease.
Palm Springs, CA 92262
$2,900,000
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Location location location! Architecturally significant prime downtown office complex consisting of eight (8) individual commercial condominiums.
Big Bear, CA 92315
$1,900,000
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Prime commercial building in the best location in Big Bear Lake.
Indio, CA 92201
$9,230,000
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73,840 SF Warehouse/Cold Storage & Packing Facility on 3.
Blythe, CA 92225
$299,800
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Cannabis zoned I-G and Warehouse available.
Palm Desert, CA 92211
$5,900,000
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Multi-tenant professional office building.
Thermal, CA 92274
$3,150,000
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Leased Investment with Strong Tenant.
Thousand Palms, CA 92276
$3,100,000
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To schedule an Open House or to request more information about this property, call Collins Coastal at (858) 252-0200.
Palm Springs, CA 92262
$5,500,000
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33 Total Units, including 2 Retail Units with Frontage on Palm Canyon Rd.
Palm Springs, CA 92264
$4,200,000
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An Incredible Opportunity To Own The Wesley, A Highly Successful Boutique Hotel In The Heart Of Palm Springs.


​​​​​​​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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