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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San Jose, CA 95122
$1,838,000
2839
sqft
4
Baths
4
Beds
Welcome to this stunning modern contemporary tri-level home built in late 2020.
Oakland, CA 94611
$1,395,000
2579
sqft
3
Baths
4
Beds
Elegant, spacious level-in Craftsman w/ Walk Score of 94! Perfect blend of turn of the century details such as box beam & coved ceilings, wainscotting, inlaid oak floors, pocket door, brick fireplace,...
Bonsall, CA 92003
$479,999
1050
sqft
2
Baths
2
Beds
Welcome home! This freshly painted, cozy 2 bedroom, 2 bathroom home invites you in with stunning sunset views of San Luis Rey River boasting 1050 sqft of luxurious living in the highly sought-after co...
Valley Center, CA 92082
$1,459,000
4031
sqft
5
Baths
4
Beds
Welcome to your oasis in Valley Center's prestigious gated community of The Ranch Valley Center, boasting a plethora of upgrades and amenities for a luxurious lifestyle.
Los Angeles, CA 90002
$420,000
1153
sqft
1
Baths
3
Beds
3 Bdr / 1 Bath home in LA .
Dublin, CA 94568
$838,000
1401
sqft
3
Baths
2
Beds
Nestled in a serene community of East Dublin, welcome to the perfect blend of luxury, comfort, and convenience.
Simi Valley, CA 93065
$429,721
1027
sqft
2
Baths
2
Beds
This is your opportunity to own a great starter home at an affordable price or invest as a rental.
Simi Valley, CA 93063
$599,000
1270
sqft
3
Baths
3
Beds
Fabulous townhome in East Simi, with yard! Light and bright floor plan, with tile flooring throughout downstairs.
Spring Valley, CA 91977
$900,000
2346
sqft
3
Baths
4
Beds
This lovely 4 bed 2.
Chino, CA 91710
$779,900
1486
sqft
3
Baths
3
Beds
Welcome to 13674 Cypress Ave, a hidden gem nestled in the city of Chino, This 3-bedroom, 2.
Palm Desert, CA 92211
$545,000
1814
sqft
3
Baths
3
Beds
WOW! We have a WINNER! Exceptional double-fairway VIEWS at Desert Falls Country Club! Unobstructed Santa Rosa Mountain VIEWS most definitely work their magic! This TURNKEY FURNISHED opportunity hits a...
29 Palms, CA 92277
$246,000
672
sqft
1
Baths
1
Beds
WONDER VALLEY MODERN: Newly updated and remodeled home located on 5-acres.
Brentwood, CA 94513
$739,900
2156
sqft
3
Baths
2
Beds
Gorgeous Wellington model! Wonderful curb appeal! Mature landscaping, rock finish, spacious covered porch & beautiful leaded glass door welcome you & your guests! Huge kitchen/dining area/family room ...
Seal Beach, CA 90740
$325,000
800
sqft
1
Baths
2
Beds
Welcome to this stunning two-bedroom home in Leisure World, a vibrant 55+ community offering a plethora of amenities and activities for active seniors.
Oceanside, CA 92057
$1,225,000
3204
sqft
4
Baths
5
Beds
Welcome to this spacious, light and airy 4 bedroom 3 bathroom home with an attached ADU on a quiet cul-de-sac.
Santa Rosa, CA 93012
$1,775,000
2344
sqft
2
Baths
3
Beds
Welcome to 11825 Barranca Road, a picturesque single-family residence nestled in the heart of Santa Rosa Valley, CA.
Bermuda Dunes, CA 92203
$245,000
760
sqft
1
Baths
1
Beds
Discover your perfect desert retreat in Bermuda Dunes' gated Saddleback community.
Crestline, CA 92325
$475,000
2035
sqft
4
Baths
4
Beds
Enjoy resort living in this elegant home surrounded by trees! This is an excellent floorplan that features 3 bedrooms all with their own private baths plus a loft that's open to the great room and...
Daly City, CA 94015
$1,098,000
1280
sqft
2
Baths
3
Beds
Welcome to this beautiful move in ready home in the highly desirable Serramonte neighborhood.
Danville, CA 94506
$2,400,000
3055
sqft
3
Baths
4
Beds
Gorgeous 5 bedroom, 3 bath, 2 story multilevel home in sought after Magee Ranch.


​​​​​​​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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