What’s In Store for the Housing Market in 2015?

2014 went out with a whimper following a robust real estate market here in San Diego County in 2013. So what do forecasters say is ahead in 2015? No one has a crystal ball, and unpredictable global factors can influence our local market, but in a nutshell, the general consensus is that San Diego County and Southern California will see rising inventory and a tick up in interest rates, resulting in modest price appreciation in 2015.

Wage growth, and thus affordability, play heavily in our market. In his recently released forecast for 2015, President of the California Association of Realtors (CAR) Kevin Brown stated, “I see a rising amount of homes on the market as well as a flattening of home prices as two main factors that will bring more buyers and sellers to the market throughout the next year.” He continued, “Stringent underwriting guidelines and double-digit home price increases over the past two years have significantly impacted housing affordability in California, forcing some buyers to delay their home purchase. However, next year, home price gains will slow, allowing would-be buyers who have been saving for a down payment to be in a better financial position to make a home purchase.”

According to C.A.R. Vice President and Chief Economist Leslie Appleton-Young, interest rates are expected to inch up only slightly, remaining low throughout the year. This should help keep the real estate recovery moving along in 2015.

The luxury market outlook seems to be even more positive. CoreLogic DataQuick reported that “luxury home sales in Southern California are hitting highs not seen in decades for homes costing $2 million or more.” Some attribute it to wealthy foreign investors buying into the luxury market in Southern California while others attribute the pace to gains in the stock market. With interest rates remaining low we are hoping for continued health in the luxury market.

Thinking of buying or selling a home? Let Deanne help you prosper in 2015. Call Deanne and get the power, prestige, and performance of Portfolio Real Estate.

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Deanne Motsenbocker CA BRE# 01724437
Portfolio Real Estate | 858-444-6687
www.portfolioluxuryproperties.com | DeanneMots@gmail.com