2014 Forecast for the San Diego Real Estate Market
The San Diego Real Estate market in 2014 will be affected by several national economics factors as well numerous local factors. On the national level, with the Federal Reserve slowing it's QE ( Quantitative Easing) we will see interest rates gradually increasing through the year, perhaps as high as 5.5% by years end. In the earliest part of the Spring market we'll see an increase in new listings and the available property numbers will likely give Buyers some excellent choices.
Prices will increase more slowly than in 2013 but will still remain above the historical average of 4%. While 2013 saw some double digit home price increases, 2014 will see numbers in the single digits perhaps as high as a 6 or 7% gain in appreciation.
While Buyers will feel the pinch of higher interest rates, they will also appreciate some easing in underwriting standards with some simplifications soon to be initiated.
The San Diego employment numbers continue to improve and this wil be a double edge sword for Buyers. The San Diego market will continue to be a Seller's market with more competition and that is helping to keep prices more firm, Buyers will more often than not, need to come to the plate on their offers. The Buyers Strategy would be best concentrated on fair price offers and seeking some advantage in the terms they offer. But Sellers will seek firm Buyers commitments and they may have a choice of Buyers and the type and percent of purchase financing could be deciding factors.
With the market being more stabilized, we are beginning a period of the " normal" market variations of years past. Location and condition being two very important preconditions for purchasing.
Let's Make it the Best and the Happiest of New Years, 2014