Will San Diego House Prices Go Down or Keep Rising?
With Mortgage interest rates on the rise, what will happen to San Diego house prices. Will local house prices continue with upward momentum, or will they decrease in value? Mortgage interest rates have increased by more than half of a point since the beginning of the 2018, and they are projected to increase by an additional half of a point by year’s end. Because of of rising mortgage rates many people are left wondering “Will San Diego House prices go down or keep rising?” Some are guessing that home prices will depreciate, yet some prominent experts in the housing industry doubt that home values will be negatively impacted by the rise in rates.
Mark Fleming, First American’s Chief Economist:
“Understanding the resiliency of the housing market in a rising mortgage rate environment puts the likely rise in mortgage rates into perspective they are unlikely to materially impact the housing market
The driving force behind the increase are healthy economic conditions The healthy economy encourages more home ownership demand and spurs household income growth, which increases consumer house-buying power. Mortgage rates are on the rise because of a stronger economy and our housing market is well positioned to adapt.”
Freddie Mac Insights Report
“As mortgage rates increase, the demand for home purchases will likely remain strong relative to the constrained supply and continue to put upward pressure on home prices.”
Industry reports are also calling for substantial home price appreciation this year. Here are three examples:
- The Home Price Expectation Survey says that prices will appreciate by 5.8% this year.
- The Freddie Mac Outlook Report is looking for home prices to appreciate by around 7% in 2018.
- The CoreLogic HPI Forecast indicates that home prices will increase by 5.2% on a year-over-year basis.