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.
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Great post! But, I’d say you are the lone voice on this. From the dentist I associate with, most feel our current dip will be over in a few months.
Not me! I agree with you!
There was so much speculation in the San Diego real estate market, what we’re seeing now seemed inevitable.
San Diego California Real Estate
It seems that SD real estate follows about a 10 year boom to bust cycle; perhaps it takes 10 years for people to forget the last bust.
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