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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Desert Hot Springs, CA 92240
$369,000
1736
sqft
2
Baths
4
Beds
BEAUTIFUL country club home that you must see to appreciate, sitting on a corner lot with easy access in or out of the community.
Lake Forest, CA 92630
$1,349,000
2624
sqft
3
Baths
3
Beds
Welcome to a one-of-a-kind fortress in the coveted Woods neighborhood.
Fontana, CA 92336
$570,296
1410
sqft
3
Baths
3
Beds
Discover this inviting Nethergate home! Included features: open dining and great rooms; a well-appointed kitchen offering white cabinets, quartz countertops and a center island; a main-floor powder ro...
Perris, CA 92570
$631,660
2680
sqft
3
Baths
4
Beds
This home gives ample space to customize your own backyard retreat.
San Jose, CA 95123
$500,000
810
sqft
1
Baths
2
Beds
Simply Adorable! Step into this charming home and fall in love with this 2-bedroom condo.
Camarillo, CA 93012
$260,000
1566
sqft
2
Baths
3
Beds
Beautiful 3 bedroom 2 bathroom, built in 2010 1,566 square feet, spacious open living room to kitchen and dining room, nice covered porch, one shed included, seller in the process of painting inside, ...
San Marcos, CA 92078
$325,000
1368
sqft
2
Baths
2
Beds
To schedule an Open House or to request more information about this property, call Collins Coastal at (858) 252-0200.
Canyon Country, CA 91351
$300,000
0
sqft
2
Baths
2
Beds
Included in this sale are new T.
Chico, CA 95973
$99,000
1536
sqft
2
Baths
2
Beds
Step into this meticulously updated residence and experience the epitome of upgraded living! This home has an updated Kitchen where you can Indulge your inner chef.
Carlsbad, CA 92011
$269,000
1440
sqft
2
Baths
2
Beds
This 2 bdrm.
Riverside, CA 92503
$199,900
1824
sqft
4
Baths
2
Beds
Welcome to 3883 Buchanan Street, Space #36! This triple wide has 3 bedrooms, 2 bathrooms, 1,824 sq.
Yucaipa, CA 92399
$67,500
576
sqft
1
Baths
1
Beds
SPACE "A"-CONVENIENT AND AFFORDABLE - Located in a desirable 55+ rent controlled park, this one bedroom one bath home has a bonus room that has not been included in the stated square footage.
Mountain View, CA 94040
$298,000
1142
sqft
2
Baths
2
Beds
Well maintained home with much to offer.
Thousand Palms, CA 92276
$228,000
1344
sqft
2
Baths
3
Beds
Welcome to Tri-Palms Estates and Country Club.
Valley Center, CA 92082
$200,000
1536
sqft
2
Baths
2
Beds
To schedule an Open House or to request more information about this property, call Collins Coastal at (858) 252-0200.
Palm Springs, CA 92262
$270,000
1980
sqft
2
Baths
4
Beds
Large four bedroom and two baths property in excellent condition.
Palm Desert, CA 92260
$484,900
1680
sqft
2
Baths
2
Beds
This recently remodeled home is situated in one of Palm Deserts premiere 55+ active adult communities, where you own the land.
Lomita, CA 90717
$185,000
1248
sqft
2
Baths
2
Beds
Welcome to this inviting all-ages community in the lovely city of Lomita,California.
Lodi, CA 95242
$349,000
0
sqft
2
Baths
3
Beds
3 bedroom 2 bath home with large 2 car garage.
San Jacinto, CA 92583
$80,000
1100
sqft
2
Baths
2
Beds
Introducing an exquisite residence nestled within the coveted 55+ Blue Fountain community.


​​​​​​​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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