San Diego real estate 2017
As I’m writing this we are in the last few of weeks of 2016 and our thoughts are now turning to the prospects for the San Diego real estate market in 2017.
Here in San Diego California the shortage of resale housing supply and the very favorable interest rate environment has maintained the momentum in home price appreciation for a number of years. Actually, 2016 San Diego real estate home appreciation was stronger than the majority of real estate insiders had predicted.
San Diego real estate 2017
Since of the nature of the real estate market reporting, it is usually a couple months behind the actual sales activity. Just recently, the sales data for October 2016 was published and it showed a surprising San Diego County home appreciation of 11%! Also the October home sales data show that the San Diego County median home price exceeded $500,000 for the first time in a decade! The San Diego County median home price in October was $507,500!
With a strong showing in October, it’s pretty much a certainty that the San Diego real estate market is going to finish out 2016 with double-digit home appreciation. This strong finish for 2016, pretty much ensures that at least for the first quarter of 2017, the San Diego residential real estate market will remain strong.
I personally believe that the San Diego real estate market, and for that matter, the entire California real estate market will continue to see a tight resale housing environment and the continuation of a resale market favoring home sellers. But, just as this year is ending with slight mortgage interest rate increases, I believe as the economy improves, 2017 interest rates/home mortgage rates will continue to increase. With our already high home prices and very low home affordability rates, I feel there is no question that this will affect San Diego real estate and 2017.
The double-digit home appreciation we have seen in San Diego this year, will just be a fond memory in 2017. The California Association of Realtors recently released their forecast for the 2017 California real estate market. In this report they are projecting that the California median home price will increase by 4.3% in 2017. I believe that the 2017 San Diego real estate home appreciation will be in line with what the California Association of Realtors is predicting for the entire state.
Although a couple of percent appreciation may not sound like much, in reality, here in San Diego that could mean that the median residential home appreciation could well be $20,000 in 2017!
Now, with all that said, keep in mind, this is just my personal prediction, but if things turn out the way I’m forecasting, it still would be worth it for those that can qualify, to buy San Diego residential real estate versus renting.
For the majority of people buying one’s own home is usually their largest single purchase ever made. So, if you are considering buying or selling San Diego residential property in 2017 it’s always prudent to first consult with your own legal and tax advisors so you can get a clear picture of the exact benefits for your particular situation. Keep in mind that real estate brokers and real estate agents are in the sales business not legal or financial advisors. Therefore, get your best professional tax and legal advice and then hire the best San Diego real estate agent to implement your plan and achieve the best possible home price, whether you’re buying or selling a San Diego real estate.
City of San Diego California website: https://www.sandiego.gov/
San Diego real estate 2017
great post! But, personally I think you’re off base. The only, and I mean only thing driving the San Diego in California real estate market is a shortage of supply. Normally, it would be increasing jobs and wages.
So, I believe were just setting up for another bubble in the housing market throughout California.
Already, in San Jose California the Silicon Valley both sales and prices of real estate are softening.
Wow – over half $1 million for a 30-45-year-old property? plus, San Diego has the highest electric rates in the country, superhigh water rates, and California has the highest income tax in the state in the country!
Sure, I understand paying a little more sunshine tax for the great weather but now it over half $1 million for the median priced home I think things have to be crazy there