Here are 4 real estate trends you can expect to see in the 2019 San Diego County Real Estate Market.
1. Housing inventory will rise, and the higher end home may take longer to sell. San Diego home inventory bottomed out in 2018, reaching its lowest levels in recorded history. This made for a market where sellers were in control. This year, we are entering more of a buyer’s market; inventory is expected to slowly grow throughout the year, particularly in the higher end homes, so sellers will now be forced to price their home competitively from the beginning since prices may be softening in some sub markets.
2. Affording a home will remain difficult. Combined with current high prices, the rise in mortgage rates is causing a decrease in affordability. Regardless, buying a home still poses a challenge with mortgage rates increasing and income growth leveling off. It is imperative that you obtain a loan pre-approval before you start searching for a home to make sure you know how much you can afford and that you have the right type of loan to make your purchase offer strong and be confident on how much your down payment and monthly loan payments are.
3. Millennials will continue to make up a large amount of the buyer pool. Just a few years ago, millennials were the living at home still and preferring renting. Most couldn’t afford to buy yet. Today they account for 45% of homes sold, which establishes them as the generational group buying more mortgages than any other. Many of them also are obtaining gift funds from family and using no money down VA loans.
4. The new taxes laws are still being figured out by everyone. The new tax laws of 2018 are still being analyzed by tax professionals, corporations, and individuals. Most people are unsure how they will benefit them and may wait until the April deadline to file or ask for an extension to buy more time to analyze their tax liability. If you do your own taxes or use an online tax file program, you may want to talk to a knowledgeable tax professional who has spent time review the new laws before you file.
What\'s My Home Worth?
Fill out these basics about your home and I\'ll get back with you!