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
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
As banks and other institutions get more detailed models, people who are most affected by climate change will face difficulties in getting financing.
We now live in a world where climate gentrification exists: People and institutions are starting to assess and appraise properties based on their susceptibility to climate impacts. The idea was largely hypothetical as recently as 2016, but over the past two years a decent body of work has emerged, much of it from U.S. academics, showing that both mortgage lenders and property buyers are pricing in some forms of climate risk.
Knowledge about climate change impacts, whether accurate or not, is already driving decisions by financial institutions that in turn affect livelihoods. Research by Jesse Keenan, an associate professor at Tulane University, and Jacob Bradt, a Ph.D. candidate at Harvard, found that lenders in some coastal and flood-prone areas are already requiring higher deposits before providing mortgages. They are also more likely to move such mortgages off their books via securitization, including to the government-sponsored entities Fannie Mae and Freddie Mac.
read more at: https://www.bloomberg.com/news/articles/2020-06-26/lenders-with-the-best-climate-data-will-be-in-a-position-to-discriminate