My friend, Jeff Grant of Sand & Sea Investments (a Full Service Real Estate Brokerage Firm in San Diego) provided me with some great information regarding the San Diego housing market. Recently, he sat down with key economists, speculators, and statisticians – most notably Dr. Stan Humphries, Chief Economist with Zillow.
Here is some of the great information he has allowed me to share with you:
Noteworthy in SD County:
– even after a great few years in real estate, we are still 16% from our peak values in 2007
– prices went up 20% this past year in SD (average pre-boom was 4.3% annually)
– June is when the flurry began slowing down, due to interest rates rising.
– Oct-Nov – prices have remained flat
During next year:
– home prices are expected to go up 2.7%
– interest rates may rise a full percent
– RE volume will be moderate compared to this year, but steady
Conclusion: 2013 was a hot, high-volume year for SD real estate (no secret). Next year is expected to remain strong, though with less volume and not the appreciation we saw this year. Dr. Humphries predicts it to be a ‘catch your breath’ kind of year, and has minimal concerns for any kind of double-dip.
Housing is such an important part of the broad economy and our own personal economy that it is important to keep a beat on the dynamics of the market. Real estate is one of the 3 paths to wealth and there are advantages to responsibly owning your own home so it will always pay to increase your awareness and financial intelligence around this topic.