Forecast: San Diego home prices to decrease

The CoreLogic Home Price Insights report says nationwide prices should decrease about 6.6 percent from May 2020 to May 2021, largely driven by high unemployment and the continued prevalence of COVID-19.

San Diego home prices will decrease 1.3 percent in the next 12 months, much less than other parts of the nation, said a forecast released Tuesday.

Zillow also forecasts the median home value in San Diego County will decrease, but slightly less than CoreLogic, at 0.9 percent in the next year. Its report cites uncertainty from buyers in the current environment, and negative economic factors before COVID-19, such as increased corporate debt and businesses scaling back on capital investments.

read more at: https://www.msn.com/en-us/finance/realestate/forecast-san-diego-home-prices-to-decrease-but-not-as-much-as-nation/ar-BB16safx

San Diego – New Vacation Rental Plan Taking Shape

The memorandum of understanding between Expedia and Unite HERE, brokered by City Councilwoman Jennifer Campbell, creates a framework to regulate vacation rentals that could potentially cut the number of whole-home vacation rentals within the city limits by 70 percent.

“San Diegans deserve short-term rental regulations that protect our neighborhoods, preserve valuable housing and will stand the test of time,” said Campbell, who represents coastal communities including Mission Beach, Pacific Beach and Ocean Beach.

The City Attorney’s office has agreed to draft an ordinance based on the Expedia/Unite HERE framework, according to participants. The new rules would carve out some of the more contentious items in previous attempts to regulate short-term rentals in the city.

The key piece of the agreement calls for capping whole-home short-term rentals to 0.7 percent of the city’s housing stock, which would amount to 3,750 permits.

The exact number of entire home vacation rentals being listed in the city currently is unclear. But the City Auditor has estimated total short-term rentals — both whole home and home share units — at 16,000.

“We have heard from an organization that watches over short-term rentals throughout the state that 80 percent to 90 percent are whole home rentals in San Diego,” said Campbell, “so home sharing is not a big part of it.”

Critics of vacation rentals say that platforms such as Airbnb and HomeAway create financial incentives for renting out properties for short-term stays instead of long-term residential use, thus reducing the housing supply and driving up prices.

read more at: https://www.sandiegouniontribune.com/business/story/2020-07-01/another-bid-percolating-to-rein-in-san-diegos-short-term-vacation-rentals

San Diego home prices increases continue to outpace nation

Note:  must take into account how many sales have closed; is there enough data (sales) to support a trend.

San Diego County home prices in May increased 7.3 percent in a year, faster than the nationwide average, said the S&P CoreLogic Case-Shiller Indices released Tuesday.

All the regions covered in the 20-city index experienced price increases, with San Diego near the top with the No.6 biggest increase (tied with Phoenix). Seattle had the biggest gain at 13.6 percent.

Zillow senior economist Aaron Terrazas wrote in an email that the report showed that the housing market was showing contradictory signals that the tide of rising prices could begin to turn.

A few of the factors he said that make it hard to tell what is next for the market: Rent growth has stabilized, which could make potential buyers less desperate to get into a home; Inventory is still historically low, but has increased in recent months; and housing starts are down, a sign that it is either too costly for builders to construct new homes or they anticipate less demand for buyers.

However, Terrazas said that a lack of homes for sale is still a large factor that will affect everyone looking to buy.

read more at: https://www.sandiegouniontribune.com/business/real-estate/sd-fi-case-shiller-20180731-story.html