What Can You Expect to See in the San Diego Real Estate Market in 2014?

What Can You Expect to See in the San Diego Real Estate Market in 2014?

 Welcome to 2014! People have been frequently asking me about what the San Diego real estate market will do in 2014 and what direction we are heading in. Obviously we know we experienced some big appreciation in 2013 and some parts of San Diego even show 20% increases! However, I don’t think we will see any appreciation like that in 2014. I say this based on trends, what the economists are seeing and what the real estate gods are saying.

Right now, San Diego has 5,766 active listings with 4,184 being detached single family homes and 1,583 accounting for apartments and townhomes. The housing recovery hit high gear in 2013 with solid homes sales and bigger than expected gains. A lot of this was due to very low demand, very low supply and very low interest rates. When you combine all that, it creates a lot of sales and high appreciation.

Economist John Burns has estimated that we see 6% appreciation nationwide in real estate. However, it would be fair to say that you can’t compare San Diego to the rest of the country. Conservatively speaking, we can expect San Diego to achieve 8-12% in 2014 depending on your area.

According to Fannie Mae, the GSE found that less than half of the people polled expect home prices to increase this year in line with trends pointing to a more measured and sustainable recovery the real estate market. This is great news for people who still want to sell their homes and for those who still want to buy, because the market is going up!

One of the reasons we believe that 2014 will follow 2013 trends is due to three major buyers we have to pay attention to. Number one is the first-time buyers. This is due to a report released by the Urban Land Institute saying that over 4 million new households will be formed over the next three years with millennials making up most of them. Number two is the move-up buyers. Because of the return of real estate wealth and appreciation, Zillow reports that $1.9 trillion in equity has been restored to people who’ve had negative equity. This allows people to sell their homes and move up or down. Number three is due to the Immigration Reform Act. If this is passed, it will be bring a tidal wave of buyers into the market.

Thank you for watching! Please give me a call at (619) 562-6800 if there is anything I can do. Make it a great day!