REAL ESTATE WATCH
by AL REX, CPA & Realtor
San Diego county average home prices are up at all three levels (below $420k, $420 through $622k, and above $622k) over last year, according to the S&P/Case Shiller Home Price Index. Lower tier prices are up 17% over 2013, with mid/upper tiers seeing a 11% and 10% rise, respectively. While Case Shiller (one of the most recognized statistical real estate measurements in the U.S.) does not drill down to the individual city level, a review of our 92011 zip code shows a solid 7.3% average price increase at the middle tier level for South Carlsbad, with a median detached home price of $830,000.
Can we sustain this year over year growth?
Most experts feel that our rapid growth was a “little too much, too soon,” as we are already seeing a slowdown in the autumn market. Some analysts feel that a flattening of prices may be in line for 2015, and are hopeful that we do not experience a mini-correction, as the Federal Reserve considers an unwinding (gradual increase) of the mortgage interest rates. Of course, the Federal Reserve is very much aware of the current alignment between interest rates and the health of the housing market, and the so called unwinding is expected to be gradual. And while there is a mild concern over a possible drop in home values, most analysts feel that a flattening in 2015 is more probable.
As you can see in the graph of San Diego trends since 1989, increases have been good through the summer, but expect a softening or flattening to occur soon.
If you ever need more specific information on your neighborhood, or even your own street, just give me a call or send me an email. I have immediate access to current market information and would be happy to provide you with some free insight.