Have you seen the latest study from Zillow? The site writes, “A panel of more than 100 U.S. economists and real estate experts was asked to rate their 2020 expectations for home value growth compared to the nation in 25 large markets nationwide.” Going by the results, it looks like San Diego’s housing market is expected to fare better than those of other cities in CA. Let’s dive into the details.
The panelists were asked whether various housing markets would under-perform, perform about the same, or out-perform relative to the national average rate in terms of home value appreciation for 2020.
Here are the results for San Diego:
- 39% expected the market to under-perform.
- 37% expected the market to perform aboutthe same.
- 25% expected the market to out-perform.
To understand the significance of these numbers, we need to compare them to those for other metro areas in California.
Here are the results for Sacramento:
- 52% expected this metro area to under-perform.
- 28% expected this area to perform about the same.
- 21% expected this market to out-perform.
Here are the results for Los Angeles:
- 55% expected this area to under-perform.
- 25% expected this area to perform about the same.
- 20% expected this area to over-perform.
Here are the results for Riverside:
- 47% expected this market to under-perform.
- 32% expected it to perform about the same.
- 21% expected to out-perform.
Here are the results for San Francisco:
- 64% expected this area to under-perform.
- 12% expected it to perform about the same.
- 24% expected to out-perform.
So, you can see that relative to other cities in California, the panel of economists and real estate experts made healthier predictions for the San Diego market than any others in California.
The study also included projections for home values in California markets most likely to fall in 2020.
The panelists were asked the question, “In which of these 25 markets, if any, do you expect home values to fall during 2020 and record negative growth for the 2020 calendar year?”
28.6% mentioned San Diego, the same as the percentage for Riverside. But a significantly higher percentage (38.1%) mentioned Los Angeles. 50% said San Jose, and 57.1% said San Francisco.
So, on the whole, San Diego also fared better than other California housing markets with this question.
So, even though markets across California may see falling home values and under-performance in 2020, it looks like San Diego is positioned better than most to weather these challenges.
On the upside, even though dropping home values are not something for sellers to look forward to, they could lead to some excellent opportunities for those in the market to purchase homes in San Diego.
Call Now to Schedule a Consultation
If you want to take advantage of falling home values and snap up some San Diego real estate at a great value, I would love to connect you with an affordable and flexible mortgage. To schedule your consultation, please give me a call today at (619) 857-7191.