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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Arcadia, CA 91006
$2,968,000
4944
sqft
6
Baths
4
Beds
Embark on a journey of refined living in the prestigious Highland Oaks area, where luxury intertwines with sophistication.
Rancho Cucamonga, CA 91737
$1,020,000
2670
sqft
3
Baths
4
Beds
Situated at 9571 Carrari Ct in Rancho Cucamonga, CA 91737, this impressive residence offers a spacious layout with 4 bedrooms and 3 bathrooms spanning 2,670 square foot of living space.
Igo, CA 96047
$599,000
3000
sqft
3
Baths
6
Beds
Impressive Home and Property welcoming a new owner to enjoy! Wait till you see these views! Boasting 120 acres of Beautiful hills and mountain views you will be racing home to enjoy to peace and seren...
Antioch, CA 94509
$429,000
1073
sqft
1
Baths
3
Beds
Nice single family detached home.
Big Bear City, CA 92314
$299,900
480
sqft
1
Baths
1
Beds
Newly upgraded Cabin in Big Bear that you have been waiting for! This 1 bedroom, 1 bathroom cabin has been remodeled throughout and perfect as a vac/season rental! Upgrades include New roof, remodeled...
Oakhurst, CA 93644
$429,000
1587
sqft
2
Baths
3
Beds
Got hobbies, need extra space?
Walnut Creek, CA 94596
$318,000
490
sqft
1
Baths
1
Beds
Wonderful unit in Downtown Walnut Creek at the Greenwood Condominiums complex! This cute one bedroom, one bath top floor unit features vaulted ceilings and tons of natural light.
Chino, CA 91708
$615,000
1463
sqft
3
Baths
3
Beds
Welcome to your dream home! This stunning two-story condo, nestled in the prestigious Waypoint at the Landings community within The Landings at The Preserve, offers the ultimate blend of luxury, comfo...
Simi Valley, CA 93065
$500,000
1001
sqft
2
Baths
3
Beds
Welcome to this charming ''diamond in the rough'' located in a desirable Simi Valley neighborhood.
Mountain View, CA 94041
$3,235,000
1408
sqft
2
Baths
2
Beds
Beautifully remodeled yet retaining many of the homes originals charming touches.
Blythe, CA 92225
$275,000
1624
sqft
3
Baths
5
Beds
5 Bed 3 Bath home with good structure, just needs some cosmetic work.
Westlake Village, CA 91361
$1,950,000
1952
sqft
2
Baths
3
Beds
Tucked away on a serene cul-de-sac in the sought-after First Neighborhood community, this exquisite 4-bedroom, 2-bathroom ranch-style home spans 1,952 square feet of luxurious living space.
Camarillo, CA 93010
$1,045,000
2564
sqft
3
Baths
6
Beds
Stunning and tastefully remodeled home nestled in a quiet cul-de-sac in a highly sought out Foothills neighborhood of Camarillo.
Martinez, CA 94553
$698,000
1396
sqft
3
Baths
3
Beds
Nestled in the trees of Hidden Lakes sits this 3 bedroom, 2.
Los Angeles, CA 90049
$3,398,000
3670
sqft
4
Baths
3
Beds
Imagine having the ultimate combination of 24HR guard-gated security, a prime golf course location, breathtaking 180' fairway and city views, and a customized floorplan with dramatic open space, c...
Malibu, CA 90265
$7,250,000
2673
sqft
4
Baths
4
Beds
Nestled within the exclusive enclave of Point Dume, this Spanish-style villa exudes timeless charm and sophistication.
Morgan Hill, CA 95037
$1,699,000
2935
sqft
3
Baths
5
Beds
A rare opportunity in Jackson Oaks that offers elegant living both inside and outside.
Palm Desert, CA 92211
$759,900
2465
sqft
5
Baths
5
Beds
Chic, vibrant and centrally located, Woodbridge Pacific Group's exciting new collection of homes at University Park is located in Palm Desert and designed with your modern lifestyle in mind.
San Diego, CA 92109
$699,000
504
sqft
1
Baths
1
Beds
Turn key vacation rental.
Paradise, CA 95969
$395,000
1631
sqft
3
Baths
3
Beds
Introducing your dream home! This modern gem, only one year old, offers 3 bedrooms and 2 bathrooms.


​​​​​​​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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