It’s that time of year again, 2020 San Diego California Housing Market Forecasts are popping up online.
San Diego real estate market this fall is looking healthy. With a strong economy and great mortgage rates, there is a lot to remain optimistic about. For the 12-month period spanning October 2018 through September 2019, Pending Sales in the San Diego were down 1.6 percent overall. The price range with the largest gain in sales was the $1,000,001 to $1,250,000 range, where they increased 11.5 percent. Market-wide, inventory levels were down 21.2 percent. The price range that tended to sell the quickest was the $250,001 to $500,000 range at 29 days; the price range that tended to sell the slowest was the $5,000,001 and Above range at 109 days.
From Real Estate experts to Bubble Pundits, what are they saying about the 2020 San Diego California Housing Market Forecast???
(Note: This information was taken on 11/1/2019. Some organizations will update their information frequently).
2020 San Diego California Housing Market Forecast – What will the housing market look like in 2020?
“The price of low-tier housing in San Diego County skyrocketed after the latter half of 2012. 2015 experienced another price increase. This is likely due to the boost given by decreased mortgage rates throughout 2015 and 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 continued to find fuel from increased buyer purchasing power. But in 2018, home price increases sharply declined in reaction to slowing sales and rising interest rates, which began in late-2017. The annual pace of increase is now just 1% in the high and mid tier and 3% in the low tier, much lower than in recent years when the annual rise averaged around 10%. Expect home prices to continue down in 2019 following a brief spring uptick. Falling home prices will continue into 2020, when the economic recession arrives, bottoming in 2021.”
“The median home value in San Diego County is $593,700. San Diego County home values have gone up 0.6% over the past year and Zillow predicts they will rise 1.0% within the next year. The median list price per square foot in San Diego County is $383, which is the same as the San Diego-Carlsbad Metro average of $383. The median price of homes currently listed in San Diego County is $655,900 while the median price of homes that sold is $566,400. ”
CALIFORNIA ASSOCIATION OF REALTORS®(California Housing Market)
The California median home price is forecast to increase 2.5 percent to $607,900 in 2020, following a projected 4.1 percent increase from last year to $593,200 in 2019. “With interest rates expected to remain near three-year lows, buyers have more purchasing power than in years past, but they may be reluctant to get off the sidelines because of economic and market uncertainties,” said C.A.R. President Jared Martin. “Additionally, an affordability crunch will cut into demand in some regions such as the Bay Area, where affordability is significantly below state and national levels. These factors together will subdue sales growth next year.”
Just when it looked like home prices may have hit a ceiling, low interest rates could give them another boost. Home prices continue to increase on an annual basis with the CoreLogic HPI Forecast indicating annual price growth will increase by 5.4% by July 2020. On a month-over-month basis, the forecast calls for home prices to increase by 0.4% from July 2019 to August 2019.
Freddie Mac (National)
Strong data over the last few months gives us reason to believe that house prices will continue to beat expectations in the coming months. We estimate that house prices will appreciate 3.4% in 2019, before tapering off slightly in 2020 at 2.6%. After decelerating earlier in the year, house price appreciation has stabilized near our estimate of long-run house price growth. We forecast that annual house price appreciation will be 3.4% in 2019 before tapering to 2.7% in 2020.
Tips For Home Buyers: As a seller, you will be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price, but instead about the ‘long-term cost’ of the home. Prior to the Great Recession, mortgage rates were at 6.35% in 2007. A $625,000 home with 20% down had a monthly payment of $3,111 back then. Today at 3.5%, the monthly mortgage payment is only $2,245, an $866 per month savings! And rates are not going go change much anytime soon. Buyers, do not wait on the sidelines. Instead, cash in on these incredible rates now.
Tips For Home Sellers: The market won’t tank anytime soon, yet we may be nearing price peaks. However It is generally harder to sell homes during election years. The reason is because an election year brings with it a natural state of uncertainty. Consider hiring a real estate agent with a great marketing strategy to help you get your home sold. According to a movoto.com study of the California real estate market, house prices typically rise 1.5% less during an election year than in the year prior to the election, and 0.8% less than in the year following the election.
In our “Millionaire Investor Seminar”, we always talk about “Five Investing Myths”. One of the myths is that “successful investors are able to time the market”. But the truth is, in successful investing, the timing finds you. So the question is “When will the timing find you?”.
Disclaimer: This story contains predictions and forecasts relating to home prices and other aspects of the housing market. Those forward-looking views are the equivalent of an educated guess and should be treated as such.