2017 San Diego real estate forecast
Just yesterday the stock market was up over 297 points continuing the post-election stock market rally. Also, interest rates and home mortgage rates have been increasing and the 30 year home mortgage hit 4%, the highest since July 2015.
In a recent report by Realtor.com, their ‘Realtor.com®’s 2017 Housing Forecast – Top 100 Metros’ of the 50 United States top metropolitan areas, when based on a combination of home appreciation and sales increases, this report forecast that San Diego California will be number 15. Realtor.com in this 2017 housing market forecast is showing that San Diego is projected to have 6.5% housing price increase.
*Note – the above 2017 housing forecast is just that, a forecast or outlook. So, this could be way off from the way the 2017 real estate market actually plays out. A good example of how what many thought was an accurate forecast, and actually the majority view can be totally off was just prior to the election, many forecast the stock market would crash and the economy would tank if Donald Trump was elected. Well, just like the majority forecast of Clinton win up until 9 o’clock or so of the election night, their forecast about the economy and the stock market has been exactly opposite of the reality! so even though this forecast is by a respected leader in the national real estate market, doesn’t mean that you should act on it without first consulting your own legal and financial advisors.
Actually the interest rates which have been kept artificially low have been increasing prior to the election and anytime the economy shows strength, usually interest rates start to move up and this is definitely a damper on real estate activity. But, it’s really a double-edged sword because an improving economy and more job creation, increases housing demand.
With San Diego’s average median home price now exceeding a half million dollars, if Realtor.com’s 2017 housing price forecast is correct, and San Diego home prices increase by 6.5%, this would mean that the median home price for San Diego County would go up approximately $32,500.
Combine this projected home price increase for 2017 with our already astronomical home rental rates in San Diego, and you have a strong case for buying San Diego real estate in 2017 versus renting a San Diego home.
With President-elect trumps calls for boosting the economy and job creation some have overlooked his call for rebuilding the military. So since San Diego is a huge military town and also has quite a bit of shipbuilding, our local economy and thereby our local San Diego real estate prices all seem ready to hit new highs if Trump even comes through with half of his projected economic improvement!
2017 San Diego real estate forecast
What a great Article!