It’s that time of year again, 2017 San Diego California Housing Market Forecasts are popping up online. This year 2016, California and San Diego County housing markets outperformed every prediction we reported. The median home price increased about 6.2% in San Diego County and California. Our own Keller Williams Realty International had the closest prediction, which was a 4-6% range increase.
From Real Estate experts to Bubble Pundits, what are they saying about the 2017 San Diego California Housing Market Forecast???
2017 San Diego California Housing Market Forecast – What will the housing market look like in 2017?
California Association of Realtors (Last year’s prediction: 3.2 percent increase in 2016)
C.A.R. released its California Housing Market Forecast for 2017. C.A.R.’s forecast projects growth in the U.S. Gross Domestic Product of 2.2 percent in 2017, after a projected gain of 1.5 percent in 2016. With California’s non-farm job growth at 1.6 percent, down from a projected 2.3 percent in 2016, the state’s unemployment rate will reach 5.3 percent in 2017, compared with 5.5 percent in 2016 and 6.2 percent in 2015.
The average for 30-year, fixed mortgage interest rates will rise only slightly to 4.0 percent in 2017, up from 3.6 percent in 2016, but will still remain at historically low levels.
The California median home price is forecast to increase 4.3 percent to $525,600 in 2017, following a projected 6.2 percent increase in 2016 to $503,900, representing the slowest rate of price appreciation in six years.
FirstTuesday Journal (Last year’s prediction: Expect prices to fall off, most likely by the end of 2015. Prices will descend 9-12 months later, in the second half of 2016.)
Lower mortgage rates free up more of a buyer’s monthly mortgage payment to put towards a bigger principal. Thus, San Diego’s high home prices continue to find fuel — not from speculators as in 2012-2014 — but from increased buyer purchasing power.
Expect home sales volume to fall off after mortgage rates begin to rise in 2017. Prices will descend 9-12 months later, likely in late-2017.
Zillow (Last year’s prediction: Zillow predicts they will rise 1.9% within the next year)
The median home value in San Diego County is $516,200. San Diego County home values have gone up 5.2% over the past year and Zillow predicts they will rise 1.9% within the next year. The median list price per square foot in San Diego County is $333, which is the same as the San Diego Metro average of $333.
Corelogic (Last year’s prediction: Home prices, including distress sales, are projected to rise by Home prices nationwide, including distressed sales, increased year over year by 6.2 percent in August 2016 compared with August 2015 and increased month over month by 1.1 percent in August 2016 compared with July 2016, according to the CoreLogic Home Price Index).
The CoreLogic HPI Forecast indicates that US home prices will increase by 5.3 percent on a year-over-year basis from August 2016 to August 2017, and on a month-over-month basis home prices are expected to increase by 0.4 percent from August 2016 to September 2016. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.
Once again FirstTuesday Journal is the only organization which predicts the housing market will go down next year. The National Association of Realtors, The Mortgage Bankers’ Association, Freddie Mac and Fannie Mae are all projecting that home sales will increase Nicely in 2017 (see here).
So what do you think? Leave a comment.