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January 2, 2018

5

San Diego real estate market Outlook 2018

by Bob Schwartz

San Diego real estate market Outlook 2018

As I write this, the final figures for the fourth quarter of 2017 are not in yet. But it seems that a number of insiders believe that the average home appreciation in San Diego will be approximately 7.2% for 2017.

One major real estate tracking analytical firm has come out with for projection of average appreciation for 2018 in San Diego California of approximately 4.2%. so, you may be asking yourself why the three percentage point drop in the forecast for home appreciation for 2018? I’m going to give my opinion here with my thoughts on why the San Diego home values will not be a strong this year as they were in 2017. Naturally, I’m just a real estate broker and not an economist. But, with that said I’m sure if he got 10 economist in a room and asked them what they thought the average appreciation for San Diego real estate would be in 2018 you would get 10 different opinions.

So, here is my personal opinion on what I see for the San Diego residential real estate market in 2018:San Diego real estate market Outlook 2018

San Diego new Central Library

Now that 2018 is finally here and new tax laws have just been passed that limit real estate interest write-offs, I believe this could be a dampening factor in San Diego’s high-priced housing market. Now, because of our severe inventory housing shortage here San Diego California I really don’t think the tax law changes will have much of an effect on our real estate market. actually, the new tax law changes could be a dampening factor on our escalating home prices, especially in the higher end of the market. This could actually cause a slight improvement in the housing stock inventory and slow down our excessive home appreciation.

San Diego townhome rental

Now with that said, don’t expect any dramatic changes or an immediate improvement in inventory levels. I believe that any changes we may see will be very slight and occur throughout the new year. For San Diego homebuyers, this makes it very tough situation to try to secure your first home.

Today, almost without exception, any home that is properly price at under $500,000 usually has multiple offers on it within the first week of its listing. So even if you are preapproved as a buyer, and come in at full price, this does not ensure your offer being accepted.

San Diego real estate

Most San Diego home sellers give cash buyers preference over a buyer who has to obtain a mortgage as a condition of their purchase. So it’s not unusual to have multiple counteroffers on properties today. Even if you were going to bid over the full asking price, this does not ensure that your offer will be accepted. Sometimes, the sellers want to see that you’re putting down enough cash that should the appraisal coming low you would be able to still go forward with the transaction by putting down a larger deposit.

Bob Schwartz, brokerforyou.com - San Diego real estate market Outlook 2018

Bob Schwartz, California real estate broker

so, I believe a more normal market will give buyers a better opportunity to purchase their first home as well as giving all San Diego homeowners more stability in the long term appreciation values because I believe that a slowly increasing market avoids a potential big selloff like we saw in the summer of 05 which was mainly caused by too much buyer exuberance combined with easy to get home mortgage loans.

additional information about San Diego California can be found on the official government website.

San Diego real estate market Outlook 2018
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5 Comments Post a comment
  1. Jan 16 2018

    What’s real strange is in one of the hottest metros Denver it’s actually more expensive now buying in the suburbs vs the city center u like most other hot metro markets today I think a # of buyers esp first timers will be under water buying through 5%+ interest rates in the hottest markets just like chasing the stock market higher n higher there will defin b some losers holding the bag; Buyers won’t be getting greenlit for as many mortgages, Debt/Income ratios is rising and now the # of high risk auto loan defaults is over 10% coupled with rising student debt. Real perfect financial storm coming again like rollling blackouts´╗┐

  2. Jan 16 2018

    I Sold a while back for abut $75k below Zestimate. Post sale the Zestimate jumped $150k within a year. Absolutely no improvements to the property as I know the buyer well. IMO that Zestimate is misleading, and reflects volatility rather than market value. IMO Irrational exuberance masking falling wages and rising interest rates. Real estate speculators will be blamed for the next downturn as they have bid up property beyond median wages…

  3. Jan 17 2018

    Something needs to happen, what goes up must go down. Here in Denver Co damn 1br apartments shot up 100% in less then 5 years this is beyond ridiculous. I am not going to mention stand alone housing value.

  4. Jan 17 2018

    High home prices are bad for everyone regardless of how many homes you own. Insurance cost property tax flood insurance. I feel you I too am investor in California. I don’t think however prices are not going to drop to much due to increase in jobs minimum wage increase´╗┐

  5. Jan 17 2018

    My house has tripled in value over the last 2 years. Problem is for you that nobody wants to live in California, not even people who live in California´╗┐

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