San Diego Real Estate Market in 2019 – WHAT TO EXPECT in the Coming Year


2019 Housing Search for San Diego County

Are we heading for a fix? Are we in a bubble? Should I sell now? The answers are yes, no and maybe. 2018 – this past year was an overall strong year for the San Diego real estate market, but the first half of the year couldn’t have been more different than the second half of the year. Through July, overall appreciation and sales were strong, inventories were low and the market was white hot.

As the year progressed, appreciating and rising interest rates hurt market affordability for homebuyers. This, combined with a substantial increase in the number of new listings, has created a drag on the market in general. We predicted at the beginning of the year an overall marketing appreciation of 6% overall, and San Diego County appreciated in line with our projections, which we and the owners were pleased to see. of the whole county. That being said, the year ended with housing supply about 50% higher than the previous year, affordability at a 10-year low, a rising interest rate environment and a fiscal, economic and political climate that is, at best, uncertain. . Ultimately, 2019 is shaping up to be a year of transition.

Are we heading for a fix? Are we in a bubble? Should I sell now? The answers are yes, no and maybe.

San Diego’s economic fundamentals are strong. Unemployment is low and we cannot build enough new homes to meet the growing population and housing needs in the market today. Affordability will continue to be an issue, but the market will hold up for the year, creating an ideal environment for buyers/sellers going up or down.

The metrics imply that a buyer in 2019 will have more choice and less competition than in previous years. Sellers will have longer time to market to sell a given home, and the market will be more balanced overall between buyers and sellers. Although inventory is higher, San Diego remains a market with relatively limited supply, so while we don’t expect the market to slow down, we expect the year to be largely flat to marginally positive.

Therefore, in 2019, we expect mild to moderate price appreciation for the foreseeable short to medium term. We are in a market correction, but it may not be the type of correction that many consumers expect. If you expect values ​​to correct by more than 15%, this does not happen. We are therefore not in a bubble. The fundamentals are strong, and in any market experiencing a bubble, the fundamentals are thrown out the window. Should you sell? It’s up to you. Where would you move? It would be beneficial to lock in massive price gains over the past few years in San Diego and move or invest in other areas that haven’t appreciated quite at the same rate and are on the verge of doing so. do (think places like Utah, Colorado, North Carolina)

If you or someone you know is considering relocating or investing in real estate in San Diego, we would be delighted to serve you and thrilled to earn your recommendation. Here’s to a great 2019!

Source by Michael Justin Wolf

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