The New Equilibrium in San Diego real Estate
Stable growth best characterizes the San Diego real estate market in 2014 and 2015.
- San Diego home prices are increasing at an annual rate of about 3 to 5%
- Thirty-year interest rates remain at or near 4.0%
- January 2015 polls by The Conference Board of Leading Indicators and Gallup both show consumer confidence at the highest level since the economic downturn
Marketplace conditions in the first half of 2015 will create the most advantageous scenario to buy or sell in the foreseeable future. The time to act is now – not because we say so…but to exploit the best market conditions we’ve seen in years!
The trend among buyers—particularly those under 40 and without families—is that they’re willing to keep their “tenant” status until they find an almost-perfect home. They want “shiny”—little to no commute, trendy shopping and eateries nearby, highly updated or move-in ready.
Savvy sellers who want top dollar for their homes are consulting their real estate agents before taking on renovations—just to make sure they’re making smart upgrades that will appeal to the buying public and improve resale value. Agents know what sells! Sellers are also putting homes on the market now in case the Fed’s recent actions result in higher interest rates, which could flatten buyer enthusiasm and cause prices to slide.
The good news for sellers: new buyers are entering the market as the San Diego economy grows. In 2014 we added 43,000 jobs. This job growth, along with other factors, has heightened consumer confidence in purchasing real estate. In the year ending July 2014, San Diego saw an increase in population by over 2% to a total of 3.21 million. Tourism in San Diego, measured by nights booked, generated more revenue in 2014 than any previous year. The rental vacancy rate is currently 2.1%, down from 4.1% just one year ago. Clearly there is a pent up demand for housing in San Diego again.
Serious buyers are crunching the numbers and realizing that a 5% increase in home prices would make waiting a year to save 5% more for a down payment an exercise in futility!
With home prices and interest rates increasing at a slow but steady pace, ally yourself with a real estate agent who will arm you with knowledge while you’re buying or selling a home. Confidence is the most important ingredient in a process that can feel like a roller coaster!
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.
Since 2009 Tom’s annual dollar volume has been higher than that of 99% of the 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 firstname.lastname@example.org or call 619-325-4170.!