San Diego is one of the hottest housing markets in the country right now, and it’s one of the top-10 real estate markets to watch in 2016. This is based on reports and forecasts issued by Realtor.com earlier this month.
San Diego Among the Hottest Housing Markets in November
The first report, issued two days ago, ranked the 20 hottest U.S. housing markets for the month of November. To create the list, the company’s data team analyzed 300 of the largest real estate markets in the country. They then measured housing supply and demand in each market (based on Realtor.com’s own website listing data) to create a list of the 20 “hottest” markets in the country. The list gets updated each month.
The San Diego real estate market cracked the top 10 for November, appearing at #6 on this list.
As with most of California, home buyers in the San Diego area are facing a supply shortage that increases competition and home prices alike. According to Jonathan Smoke, the company’s chief economist: “California remains hot as pent-up demand continues to drive activity in very supply-constrained markets.”
The limited supply comes at a time when demand is rising, and this is driving house prices north. In short, there aren’t enough homes listed for sale in the San Diego area to satisfy the current level of demand, and this imbalance could likely carry over into 2016.
Meanwhile, the metro area’s population continues to grow, bringing even more home buyers into the San Diego housing market. Between 2010 and 2014, the county’s population increased by more than 5%, according to the U.S. Census Bureau.
A number of other California cities made the “hot list” in November, including San Francisco (appearing at #1), Vallejo (#2), and San Jose (#4). In fact, the top-10 list was dominated by California cities — eight of them in all.
One of the Top 3 Real Estate Markets to Watch in 2016
Realtor.com also offered a prediction for the San Diego housing market in 2016. By their estimation, it is one of the top 10 real estate “markets to watch in 2016.” The city appeared in the #3 spot in the ranking, which was published yesterday.
According to Realtor.com’s senior editor Cicely Wedgeworth, the company’s economists “took past trends and seasonal variations of housing and economic data for the 100 largest markets in the country … [and then] identified the markets whose forecasted growth was equal to or better than the U.S. average.” Based on this, they produced the list below.
Top 10 Real Estate Markets to Watch in 2016
- Providence, RI
- St. Louis, MO
- San Diego, CA
- Sacramento, CA
- Atlanta, GA
- New Orleans, LA
- Memphis, TN
- Charlotte, NC
- Virginia Beach, VA
- Boston, MA
Again, this list is based on the company’s own real estate listing data. But since they are one of the largest listing websites in the country, it’s a decent indicator of what the San Diego housing market is doing right now — and what it might do in 2016.
Are Home Prices Starting to Cool?
The San Diego real estate market might be hot in 2016, but it’s also showing some signs of cooling.
According to a recent analysis by CoreLogic, a Southern California-based financial data firm, home prices in San Diego County actually dipped in October compared to the previous month.
When measured year-over-year, however, home prices in the county have risen. They rose enough during 2015 to justify higher loan limits in 2016.
In December 2015, the real estate information company Zillow said that “San Diego County home values have gone up 6.4% over the past year and Zillow predicts they will rise 2.2% within the next year.”
This is one of many recent housing forecasts that suggest a cooling period is coming, at least where house prices are concerned.
Disclaimers: This story contains third-party data that are deemed reliable but not guaranteed. It also includes forecasts and predictions for the San Diego real estate / housing market in 2016. These forward-looking statements were provided by third parties not associated with the Home Buying Institute. The publishers of this website make no claims or assertions about future housing conditions or trends.