Home prices have calmed down Nationwide
Nationwide home prices have settled down. However, according to the San Diego Union Tribune San Diego County’s median home price has increased 6.3 percent. This is reflected by the low unemployment rate and low mortgage interest rates. Home prices are definitely continuing to climb throughout San Diego County and across the Western US. Loans are being made easier because interest rates are at record lows making it more affordable to borrow than ever before. That combined with the staggering costs to rent are creating a huge incentive to get on the home purchase ladder.
More homes will become available on the market
Because of price appreciation, more homeowners will be inclined to put their homes on the market. The new home market also received a boost in 2016. Builders are focusing more on starter and middle-range homes, which will increase inventory and make it easier for buyers. The new Millenia development in the Otay Ranch and Eastlake area is expected to include nearly 3,000 various multi-family residential units. With more homes on the market, bidding wars become less common and prices might ease off into completion of the project.
The low mortgage rates won’t last forever
It has been suspected for quite some time that the FEDS will not leave the rates as low as they have been. Everyone is expecting them to increase the interest rates soon. This means that the window for record low mortgage rates is closing, and closing fast. Higher rates push up borrowing costs and monthly mortgage payments. 2016 is the year that you will most likely get the best rate you will see for some time to come.
Rent is expected to increase throughout 2018
According to Fox 5 San Diego, the average monthly rental payment is expected to increase to $1,577 in 2018. That means renters in San Diego would see a 10.9 percent increase from 2015. Buying in 2016 might mean that you save money down the road in the years to come. Even though mortgages could get more expensive, buying might still be a better deal. Homeowners also enjoy tax breaks that renters simply don't have access to.
2016 has been a good year for homeowners. If you wanted to sell your home, you probably sold it at a higher price than what you bought it for. If you wanted to find a home to move into, you probably didn’t have a problem getting a great mortgage interest rate and had a few options on the market to consider. If you’re interested in buying or selling talk to a Realty Executives Dillon real estate expert to see how we can help you achieve your real estate goals.