Wow! What a crazy year we all just lived through. So, what’s in store for San Diego home prices for 2021?
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According to the home price insights report by CoreLogic:
Across the nation we saw home values increase 8.2%. But here in San Diego, we saw detached homes increased 14% and condos and townhomes increased 12.3% over the last 12 mos.
That dramatic rise in home value was due to the inventory of homes reaching all-time low levels while at the same time mortgage rates went to historically low levels.
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Here is a quote from CoreLogic, “The availability of for sale homes has dwindled as demand increase and coronavirus outbreaks continued across the country which delayed some sellers from putting their homes on the market. At the same time those who maintained employment and income stability are also incentivized to buy given the record low mortgage rates.
On top of that, on my boots on the ground opinion, the whole work-life dynamics has changed as more people and more companies discover that people can successfully work from home and I predict that that’s going to be with us long after the kids go back to school.
So, what does that mean for home values for 2021? It is going to be dictated by supply and demand just as we saw last year. If the inventory remains low, we already know that the rates are going to be low then we are going to see some increasing in home values over the next 3 to 6 months at least.
