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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Tracy, CA 95376
$875,000
3159
sqft
3
Baths
5
Beds
Luxury at its Finest! Welcome to your dream home, where space, tranquility, comfort, and convenience come together! It is nestled beside a picturesque park in the serene Westfield Estates neighborhood...
Encino, CA 91436
$3,375,000
6761
sqft
7
Baths
7
Beds
SHORT SALE, SHORT SALE! Located in prime Encino flats on a cul-de-sac awaits this newer 2014 built French Chateau inspired estate boasting 6,761 SF including 5,576 SF Main House + 1,185 SF Guest House...
Redwood City, CA 94061
$1,199,950
1550
sqft
2
Baths
3
Beds
This Bright and Spacious Top Corner Unit is ready for Move in.
Yorba Linda, CA 92886
$585,000
1062
sqft
2
Baths
3
Beds
Welcome to 6560 Shady Gate Lane! This upper end unit is nestled in the sought-after Fairmont Hill condominium community.
San Jose, CA 95120
$1,980,000
2002
sqft
2
Baths
4
Beds
Welcome to your dream home at 1158 Washoe Dr! A stunning single-story family residence in Almaden, featuring 4 bedrooms, 2 bathrooms, and a plethora of updates that make it truly special.
Livermore, CA 94550
$444,000
629
sqft
1
Baths
1
Beds
Charming 1 bedroom, 1 bath condo in the popular Brookmeadow community.
El Sobrante, CA 94803
$700,000
740
sqft
1
Baths
2
Beds
Charming home! Quiet neighborhood, secluded, private, LEVEL, large backyard.
Oakley, CA 94561
$615,000
1237
sqft
2
Baths
3
Beds
Welcome to this charming move-in ready single-story home nestled in a well-established neighborhood.
Union City, CA 94587
$1,498,888
2129
sqft
4
Baths
4
Beds
Experience elegance and style at its finest in this D.
Jurupa Valley, CA 92509
$579,999
1584
sqft
3
Baths
3
Beds
RUN - DONT WALK.
Lancaster, CA 93535
$566,991
2667
sqft
3
Baths
4
Beds
Welcome to Seasons at 20th St by Richmond American Homes! This impressive two stories home offers a popular open floor plan with great room, dining room, large kitchen and a complete with a center isl...
Oakland, CA 94611
$849,000
1236
sqft
3
Baths
3
Beds
First time available in 66 years! Built in 1923, this home has been lovingly enjoyed by the same family since 1958.
San Diego, CA 92122
$600,000
554
sqft
1
Baths
1
Beds
Welcome to this charming property featuring a soothing natural color palette that creates a serene atmosphere throughout the home.
Aptos, CA 95003
$659,000
1156
sqft
2
Baths
2
Beds
Lovely, Clean, Light and Bright, Beautifully Updated, and Centrally Located, are all accurate descriptors for this spacious end unit at 6300 Imperial Court! Fresh interior paint showcases the new floo...
La Quinta, CA 92253
$1,845,000
3220
sqft
5
Baths
4
Beds
This gorgeous modern mediterranean pool home has the ideal floor plan for indoor/outdoor living.
Lakeview Terrace, CA 91342
$899,998
2096
sqft
3
Baths
4
Beds
Welcome to this Lakeview Terrace gem! This spacious home offers 4 bedrooms and 3 bathrooms, providing ample space for comfortable living.
Chula Vista, CA 91910
$574,800
1278
sqft
3
Baths
2
Beds
FREEWAY ACCESS, LOW HOA, MOVE-IN READY.
San Jose, CA 95117
$999,888
1075
sqft
2
Baths
3
Beds
Rare Opportunity Single house Style, Duplex condo in the heart of Central Location Unique HOA only two unit Condo, with no HOA Fees.
Oceanside, CA 92056
$875,000
1603
sqft
3
Baths
5
Beds
Outstanding, updated single story home, with white picket fence, freshly painted inside and out- Ready to move in and enjoy! This home includes a fully permitted Accessory Dwelling Unit (ADU) for gue...
Livermore, CA 94551-8922
$1,300,000
1694
sqft
2
Baths
3
Beds
Welcome to one of the most desirable locations in Livermore.


​​​​​​​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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