No San Diego Home Market Correction Till 2017
Are we still really 5 years away from seeing the San Diego real estate market “corrected” and if so what does that mean for home buyers and sellers?
Economists Predict a Market on the Mend (Slowly)
This week the lead economist for the California Association of Realtors forecast the Golden State's housing market wouldn't be fully corrected until as far out as 2017.
A statement by the president of the association also predicted a slowing of growth in the coming 12 months, not due to a lack of demand but rather lack of supply of homes to feed it. CAR's latest outlook for 2013 anticipates a 1.3% rise in single family home resales and a 5.7% increase in median home prices.
However, given San Diego real estate's stellar performance in 2012 we can probably expect local numbers to exceed this, especially with more movement in the higher end market.
Exactly how fast the local market grows next year will all weigh on the amount of homes becoming available for sale…
Emerging San Diego Real Estate Trends
What these reports fail to cover is several factors which could potentially free up more San Diego County home inventory and drive up home sales and prices even faster…
A report from Zillow estimates around one third of San Diego homes were still underwater as of July 2012. As these homeowners are unlikely to benefit from trying to wait out the market, with a couple of years at best before those who bought at the peak of the market make it back to break even point they are going to need to list and at least get their properties under contract before 2013.
The current dramatic rise of property prices in a number of San Diego zip codes is lifting many others from under the water and will enable them to sell, fueling more sales and even higher prices.
At the same time the amount of distressed property inventory could well increase, even if Sand Diego foreclosures continue to decline. This will come from mortgage lenders increasing their flow of REOs to the public as they are able to cash in on improved values and as many of these mortgage giants decide to forgo the short sale process due to fraud being caught by government agencies and reviews of approvals likely to become more stringent.
12 Weeks of Incredible Opportunity
The Bottom line is that the next 12 weeks present a great time to buy or sell homes in San Diego, though homeowners are rapidly running out of time if they want to cut a deal before end of year, especially with all of the chaos of the holidays coming up.
What's your take on the latest predictions, what will it take for you to decide to sell or have you already been out house hunting and just haven't been able to find the right home yet?