San Diego Market Trends

San Diego city scape 031819

San Diego Market Trends

RENTS RISING. Rents in San Diego county in general are rising, according to Zillow in their February report, released last week. San Diego Metro rents in February increased 0.4% from January and 4.3% from last February. Chula Vista, Oceanside, Escondido, and El Cajon rose similarly. Highest annual increases were Encinitas (5.3%, Ramona (5.1%), Lemon Grove (5.1%), National City (4.7%), and Valley Center (4.6%). Lowest were Coronado (-1.8%), Del Mar (0), Solana Beach (0.2% Bonsall (0.6%) and Borrego Springs (1%). The average of rents for San Diego Metro was $2,643. Rent asked by owners/property managers averaged $2,700. The national average rent is $1,472.

Rising rents make owning a home more attractive, as real estate values are dropping. Read below.

HOME VALUES DROPPING. Home values in San Diego county dropped 0.2% from January, 0.4% from the previous quarter, and rose only 2.1% year over year, according to the same Zillow report. The recovery from the large drop late last year is nonexistent. Zillow’s estimated change for home values in San Diego county is -0.2% over the next 12 months, which is far lower than their forecast several months ago. National estimate is +7.5% Current average value of homes for San Diego county is $590,500. National average is $226,300.

Flat home appreciation makes folks want to wait to buy. Risk of higher rates could change that. Read below.

RATES STAY LOW; COULD RISE. Mortgage rates remain at 14 month lows, according to Mortgage News Daily. However, the outlook for the rest of the year is murky at best. The collapse of the stock market late last year and the Fed stating they would take a “patient approach” helped lower the rates from the highest rates in 7 years in October/November. But future rates depend largely on economic data, fiscal policies, and the stock market, all of which are hard to predict. The worse they are, the better for lower rates. What the Fed says on Wednesday could give us a clue for the immediate future.

It’s going to be a bumpy road for rates this year. Improving economy, volatile stock market, China, Federal Reserve, inflation, Brexit, just to name a few. Buckle up, Buttercup!

Relevant articles:

https://www.zillow.com/research/local-market-reports/

http://www.mortgagenewsdaily.com/consumer_rates/904784.aspx

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