The North County and San Diego Real Estate Market Report for February 2019 continues to show a slower market, but with drops in interest rates that started at the end of December, there has been a slight pickup in sales. That’s why closed sales numbers were down 16.2 percent in North County and 17.9 percent countywide compared to the previous January. But pending sales, which show more recent activity, dropped quite a bit less with a 1.1 percent decrease in North County, and a drop of 3.7 percent countywide.
Experts anticipate that interest rates will rise as high as 5.5 percent in 2019. If this happens, it will most likely put a damper on home sales and appreciation. But because income growth is strong in San Diego, Zillow still predicts our market will be one of the top 10 hottest markets in 2019.
The North County and San Diego Real Estate Market Report for January 2019 shows stronger price growth in December, but continues with the same declining market trends that began last April. So even though the median sales price is still climbing, the number of sales continues to drop. We are also seeing longer market times and a growing inventory of homes for sale.
Experts predict more of the same in 2019 with the California Association of REALTORS® noting that while the median home price may rise slightly, home sales will continue to drop. If our slower market is keeping you on the fence as far as buying, you may want to reconsider. Interest rates have recently decreased in reaction to stock market volatility and trade tensions, but most experts expect them to climb, possibly as high as 5.5 percent, in 2019.
As we begin another year, everyone wants to know: “Where is the housing market headed in 2019?”
It’s not only buyers, sellers, and homeowners who are impacted. The real estate market plays an integral role in the overall U.S. economy. Fortunately, key indicators point toward a stable housing market in 2019 with signs of modest growth in some parts of the country. But for California, that might not be the case. The California Association of REALTORS® (C.A.R.) is predicting a slight growth in home prices, but a slower weaker market overall. These shifting conditions could impact you if you plan to buy, sell, or refinance this year.
The North County and San Diego Real Estate Market Report for December 2018 brings more evidence of a shift from a sellers’ to a buyers’ market. Although unemployment is the lowest it’s been in more than 40 years and wages have grown, they still have not kept up with home prices. This coupled with rising interest rates has made affordability very difficult, especially in more expensive markets like ours.
What should we expect in 2019? Most experts predict that interest rates will continue to increase in 2019. They expect minimal price increases and a slowdown in home sales. Although buyers are nervous about this market, it’s a good time to lock in interest rates and find better deals on homes.
As we head into a new year, the most common question I receive is, “What’s the outlook for real estate in 2018?”
It’s not just potential buyers and sellers who are curious; homeowners also want reassurance their home’s value is going up. The good news is that a strong U.S. economy, coupled with low unemployment rates, is expected to drive continued real estate growth in 2018. However, changes on the horizon could significantly impact you if you plan to buy, sell or refinance this year.
