After Holidays how is the San Diego Real Estate Market in 2025
George Lorimer
Friday, December 27, 2024
Two opposing forces are controlling the San Diego housing market.
1. The lack of affordability.
2. The lack of available inventory.
These two factors keep the prices stable (flat) and demand relatively low.
If the mortgage rates dropped from 7% to 6%, then buyer demand would likely increase by 20%+, and there would be a shortage of inventory, causing prices to go up like right after COVID, 15-20% year over year price increases.
Alternatively, if the economy gets terrible and there are tons of job losses, an economic recession, and a housing recession (uncommon in an economic recession, but usually housing stays stable), Then there may be more inventory, which would outpace buyer demand, creating a drop in home prices.
If this makes sense and you're trying to figure out what stage of the housing market we are in, get my FREE Report - San Diego Housing Forecast for 2025.
1. The lack of affordability.
2. The lack of available inventory.
These two factors keep the prices stable (flat) and demand relatively low.
If the mortgage rates dropped from 7% to 6%, then buyer demand would likely increase by 20%+, and there would be a shortage of inventory, causing prices to go up like right after COVID, 15-20% year over year price increases.
Alternatively, if the economy gets terrible and there are tons of job losses, an economic recession, and a housing recession (uncommon in an economic recession, but usually housing stays stable), Then there may be more inventory, which would outpace buyer demand, creating a drop in home prices.
If this makes sense and you're trying to figure out what stage of the housing market we are in, get my FREE Report - San Diego Housing Forecast for 2025.
We would like to hear from you! If you have any questions, please do not hesitate to contact us. We are always looking forward to hearing from you! We will do our best to reply to you within 24 hours !