Anyone else feeling whiplash from watching the stock market last month??
For those of you who missed the excitement – the Federal Reserve issued a fourth interest rate hike to close out 2018. Unfortunately this spooked the stock market into a terrifying roller-coaster ride that left many feeling whiplash in their wallets.
The Fed has since indicated that the number of rate increases will be halved in 2019 – while this new year’s resolution is a hopeful start, it may be of little comfort to an already compressed consumer. Change is happening, but is it enough to tackle the growing affordability issue? Here’s what’s ahead for San Diego real estate in 2019..
Unemployment rates are at record lows & wages continue to improve for many households across the country, which is generally a good sing. However, as wages gradually increase so do average home prices AND the rate of increase for homes is drastically outpacing wage increases. This condition is what created an affordability crux in the second half of 2018.
Last year, home prices were consistently up again but at reduced levels compared to years prior. Median Sales Price this month was up 2.5% for Detached homes and 3.5% for Attached – compared to last year with 5.7% and 8.1% increases. We saw inventory increase 29.6% for Detached homes and 55.9% for Attached homes.
Mounting evidence says we will continue to maintain these higher inventory levels across SD county. This is a step in the right direction for alleviating affordability gaps – however we still have quite a distance to cover – Housing affordability will remain an important storyline in 2019.
Having been raised in San Diego, Joseph has a great wealth of knowledge of each community San Diego has to offer. Combined with being extremely hard working, having a great attention to detail, and having the ability to listen Josephs clients receive an elite level of service.
Market Watch: Is "Big Change" on the Horizon??Scary times ahead? Well,
"Thank you Arendsen Group for all of your help! Joseph and his amazing team helped us prepare and sell our house in Oceanside and also advised us while we worked with our buyers agent to buy another home out of state! We had a couple of small bumps in the road but they were able to guide us through and sell our home for more money than we initially expected to!!! Thank you all for your hard work and professionalism!"