Happy holidays! Today I’m here with your final market update for 2016, as well as my market predictions for the new year.
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Happy Holidays! I’m here with your year-end market wrap up. I’ll also give you a sneak peak into the 2017 real estate market.
The final numbers for 2016 are coming in. San Diego’s median price point hit $507,000, which is the first time we have broken $500,000 since November of 2005.
As a result, there have been some concerns about the market topping out again. However, we still have not matched the most recent market peak of $517,000. Historically, each peak in the real estate market exceeds the previous peak, so we technically have a bit of a run up to go.
Still, home sellers hold all of the cards right now thanks to incredibly low inventory. Year over year, low inventory has driven our market trends. I expect that to be the case in 2017. So far, this year has mapped out almost exactly like 2015, and I predict 2017 will be more of the same.
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I predict 2017 will be more of the same.
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More inventory will hit the market mid-January, and there should be a big rush through spring. The market will slow down again next fall.
What’s interesting is that we are still seeing a lot of market activity this holiday season. Why? For years, there has been talk about how interest rates need to go up. Well, it’s finally happening. Rates went up a half point over the last few weeks, and with the Fed raising their rates, there is some concern about inflation. As rates jump up, housing affordability goes down.
That’s it for our 2016 real estate market wrap up. I hope you all have a wonderful holiday season. If you have any questions, please don’t hesitate to reach out to me. I would be happy to help you!
