Have you noticed a change in the San Diego real estate market? If you listen to the nightly news you would think that the housing market, and more specifically the San Diego housing market, is as chicken little said "the sky is falling". Well that might not be so. According to recent data and figures from the Case/Shiller index San Diego's real estate market is far better off than the rest of the nation. The California real estate market overall is doing better than the rest of the nation with respect to recovering.
According to the latest numbers San Diego's real estate market was up 1.7% compared to a year ago. This despite the San Diego housing market taking a small dip at the end of last year. More than once San Diego has been highlighted as one of the real estate markets showing strong signs of recovery. Forbes has predicted the San Diego real estate market to grow, by small amounts, over the course of the next 3 years where as most of the other top 20 markets are expected to decline.
Some of these real estate markets included in the Case/Shiller index are even predicted to suffer through a double dip recession when it comes to their housing markets. Yahoo real estate has also ranked San Diego's real estate market to be #5 in the nation when it comes to making a strong, balanced and steady recovery.
With mortgage rates now starting to inch upward buyers who waited till now maybe facing slightly higher prices, depending on the price range, and more importantly a higher cost of money. Another consequence of higher mortgage rates is a decline of purchase power for buyers; a 1% increase in a mortgage rate roughly translates into a 10% decrease in the amount of purchase power of a potential buyer.
So I hope this information is useful for buyers in the San Diego real estate market and in other recovering California real estate markets. If you continue to listen to the news it cost you ,as a buyer, money that cannot be replaced. As I've always said, right now is a great time to buy a home as long as you asses your own personal situation. One of our missions is to provide information to buyers as well as sellers so they can make the most educated decision possible when they feel the time is right. So if you would like a free no obligation consultation or would simply like answers to your questions, please feel free to contact us here at the San Diego Real Estate Cafe and we'll be glad to help.
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