2014 –San Diego Real Estate Looks Promising
2013 was a year of ups and downs. Spring began at a feverish pitch. Pent up demand, together with the perception that prices had hit the bottom while interest rates would rise caused a season of multiple offers and “bidding wars.” Days on the market dropped from 82 in 2012 to only 53, as buyers hurried to act.
Their perceptions were true. As of November, the year-to-date home prices in San Diego had risen nearly 20% over the same period in 2012. At the same time, interest rates rose approximately 1%. At a number hovering around 4.5%, interest rates are still a bargain compared to 6% in 2002 – and 13.5% in 1983. However, the increase did give pause to some buyers who hoped for a reversal.
Rising prices and rising rates combined with activities in Washington D.C. caused a drop in consumer confidence, and sales slowed a bit in late summer. Now that some of the budget questions appear to be answered, consumer confidence is returning.
What will 2014 bring?
Some economists predict that San Diego home values will return to a normal appreciation rate of around 5-6%. Others expect gains approaching 10%.
Foreclosures will have a dwindling effect on our market. As of third quarter 2013 Notices of Default were down by 59% and actual foreclosures were down 69% from 2012 levels.
Short sales, while accounting for more than 26% of sales in 2012, represented only 13.5% of the sales in 2013, and that number will continue to shrink as home prices rise.
Meanwhile… San Diego will continue to thrive.
Zillow, Inc. predicts that San Diego will be the eighth-hottest American housing market in 2014. This is based on population growth, lower than average unemployment, and expected home value growth.
We who live here know there’s more to it. San Diego is a fine place to live, with near-perfect weather and countless recreational and educational opportunities. In addition, our economy offers jobs in every sector, including scientific research and advanced technology. Online job postings in January exceeded 15,000 and 28,000 new jobs are expected to be added in 2014.
Good news for move-up buyers…
While average home prices rose sharply in 2013, the largest gains were in the mid to low ends of the market. Buyers wishing to move into the million dollar range will still find some true bargains.
Whatever the market… Tom Dunlap sells homes
San Diego’s real estate market in recent years has resembled a roller-coaster, but it makes no difference to Tom Dunlap. He’s been through the downturns and the upswings many times, and through it all still gets the results his clients want and need.
Tom has held the title of #1 agent among the 200+ agents with Ascent Real Estate since 2010, and in 2012 sold more homes than 99% of the more than 18,000 REALTORS® in San Diego County.
When you want results, ask a busy person. When the result you want is a successful San Diego home sale, ask Tom Dunlap. He has the skills, the experience, the energy, the drive, and the desire to turn your real estate goals into reality.
Write email@example.com or call 619-325-4170.!