Will Lower Interest Rates Revive San Diego Real Estate?

The one word answer is NO!

Interest rates have come off their highs by about 1/2 point. Naturally, the ‘experts’ are now saying that this will be the needed force to put values back into the black. Keep in mind, these were the same San Diego real estate experts who, over a year ago said no bubble/slowdown in our market. They were wrong then and are wrong now!

Back in (our last major real estate drop) mid 1989 and through most of the 1990’s, interest rates trended down! Yet, this downturn lasted appx. five years! Falling interest rates alone cannot turn around a market that had an upside run of ten years, the last half of which, saw home value appreciation of about 20% per year!

Sorry to say, but, San Diego is in for a double digit depreciation drop that is well underway! View all San Diego MLS listings.