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What’s Ahead For The 2016 San Diego Housing Market

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The housing market in San Diego should remain strong in 2016. Although Housing prices slipped just slightly this past fall/winter they are still ahead of where they were this time last year.

Here is what others are saying about the San Diego Housing Market:

From City News Service

“Home prices in San Diego dipped 0.3 percent in October from the month before, and rose 6.2 percent over October 2014, according to theStandard & Poor’s Case-Shiller Home Price Indexreleased Tuesday.
Case-Shiller created its indices by taking home prices in 20 large cities in January 2000, assigning them a value of 100, and tracking their subsequent rise and fall.
San Diego’s index stood at 215.75 in October — meaning that home values more than doubled over almost 16 years. The increase is the third fastest in the U.S., behind Los Angeles and San Francisco.
The composite 20-city index was at 182.83 in October, up 0.1 percent for the month and 5.5 percent higher since October 2014.”

Realtor.com
“The 2016 housing market is expected to be a picture of moderate, but solid growth as acceleration in existing home sales and prices both slow to 3 percent year over year due to higher mortgage rates, continuing tight credit standards, and lower affordability. The new construction market will see more significant gains in the coming year as new home starts increase 12 percent year over year and new home sales grow 16 percent year over year. Total sales for existing and new homes will reach 6 million for the first time since 2006, a result of a strong gross domestic product increase of 2.5 percent and continued job creation. These healthy economic indicators will be tempered by lack of access to credit and rising home prices, which will ultimately limit housing demand and growth”

From what I am seeing it seems like 2016 Housing Market will see a stabilizing market with a more modest 3-6% increase in home prices which many would consider a healthy housing market. It would help matters a bit more if we had more inventory but we still may be a year two away from that happening as people get used to the higher interest rate and steadying economy.

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