What Are Home Prices in San Diego Now??

Hey there, Betsy Heller here, Achievers Realty, talking to you today about home prices in San Diego County and what I see going forward for the second, third, and fourth quarters of this year and on into next year. I want to start with this graph. This is a graph of the last five recessions. I know that you’ve probably thought about these before, but obviously, 1980, where the interest rates went really high, 1981 where we had a secondary crash as a result of it. Then we had 1991, and this was a result of the savings and loan crisis. And then in 2001, this was after the .com bubble and 911. And then obviously the major meltdown in 2008. I know most of you are worried that we might be seeing a repeat of this, but I don’t think so. What we’re really seeing is something that’s more like 2001, just in slow motion.

But if you see here, the market actually ran to real estate and real estate prices went up, and I’m seeing that again a little bit today, even though the volume, the number of properties in transaction, are lower than they would normally be. Yet, prices are still actually the same and going up. The last two transactions I’ve done have been actually multiple offers. I think what you need to hear from this is some comforting words, which is more than half of the United States actually own their homes outright. And of the homes that actually have loans, more than half of them owe less than 50% of the value, so there’s a lot of equity in the market as well as a lot of cash to balance it. So what you’re seeing is when people don’t like the prices they’re getting, they’re just taking their homes off the market, which is keeping that demand higher because the supply really hasn’t jumped all that much.

So I hope that helps in understanding our marketplace together. Now is a really great time for you to prep your home and get it on the market quickly if you’re looking to move up and to be prepped and ready for the summer for the sellers who are looking to sell and perhaps move down. All right, looking forward to helping you. As always, we’re here to serve you.