Tag Archives: 2017 real estate

San Diego – 2017 Housing forecast

Expect increased rent prices in San Diego County next year and many of the same hurdles to get new homes built.

That’s at least some of the consensus coming out of two real estate forecast conferences in San Diego this week attended by builders, landlords and investors.

There was cautious optimism about President-elect Donald Trump, anticipation of changes for office space demand and a general displeasure about the failed effort to get Lilac Hills built at the annual economic forecast gatherings of the local Institute of Real Estate Management in La Jolla on Friday and the University of San Diego’s business school on Thursday.

Donald Trump

The real estate industry has had a mixed reaction to Donald Trump’s election victory, despite his history as a real estate developer.

Jason Wood, project principal at San Diego real estate development company Cisterra Development, said Trump’s plan to lower taxes and cut regulation could be a boon for the industry, at least in the first few years.

“Does everyone know the new president is going to try and lessen some of the regulation that has held us back?” he said to the roughly 250 attendees at the La Jolla event.

He said there was no question the industry would change, it was just a question of how much.

“2017, in my opinion, is going to be a good year in our business,” he said.

However, other aspects of the president-elect give other analysts pause.

“This idea of traumatizing world economies through Twitter is very unsettling,” said real estate consultant Gary London at the same event. “ I think if we start creating trade wars with China, that could have an impact.”

read more at: http://www.sandiegouniontribune.com/business/real-estate/sd-fi-2017-housing-20161209-story.html

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2017 – SoCal housing forecast not rosy

Homeownership rates will rise across the nation in 2017 after years of declines as more millennials enter the market, Zillow predicted Tuesday in its look-ahead report.

But, the Southern California market is not expected to see the same gains experienced in the rest of the country because of a lack of inventory and other factors, the home listing website said.

“It’s not as likely . . . and not as obvious in the SoCal area. I’m more hesitant to say you’ll see a tremendous increase in the homeownership rate,” said Svenja Gudell, Zillow’s chief economist. “You could see a small uptick, but it’s not a given.”

She said if more inventory comes on the market, there is a chance Southern California could see a bump in homeownership. But, Gudell said it also depends on job and income growth.

The national homeownership rate was 63.5 percent in the third quarter of 2016, said the U.S. Census’ Housing Vacancies and Homeownership estimate. At the same time in San Diego County, the rate was 54.4 percent.

Zillow’s report predicted national home values to rise 3.6 percent next year. In San Diego County values will rise 2.1 percent.

Gudell said mortgage rates will be a major factor in slowing value growth, and it is more extreme in San Diego County where home prices outpace much of the rest of the nation. The higher costs mean substantially more money based on interest rate changes.

Zillow’s rental prices for San Diego County are up 5 percent so far this year. The website predicts rents will rise 4 percent in 2017, again bucking the national trend of more substantial reductions.

read more at: http://www.sandiegouniontribune.com/business/real-estate/sd-fi-zillow-prediction-20161122-story.html

disclaimer: for information and entertainment purposes only