If interest rates stay under 4%, then stay in the San Diego real estate market.
If those interest rates creep up over 4%, then you should sell, and ‘get out’ of the market.
How is that for a simple game plan for 2018?
Look at the below graph. We could easily see another stellar year for San Diego Real Estate with property values increasing as much as another 20% in value.
Yes, you read that correct, in 2018 property values in San Diego will go up another 20%, bet on it, just as long as interest rates do not go over 4%.
So what do I think indicates a real estate market peak? (which will definitely come in the next 1-2 years). These 5 things will indicate when the peak is.
1. Strong upward momentum in existing homes sales
2. Inventory of homes for sale to be below three months
3. Foreclosure sales to be near their lows for the cycle
4. Strong new home construction
5. Housing affordability to be at or near 17%
Do not wait to sell for too long, and here is why:
San Diego real estate has become very highly valued in 2017 – but many people still believe it’s still a good time to buy, which may turn out to be correct, and I would support if you are not considering your home to be an investment (a whole topic in itself), but see it as a nice tax benefit and a place that nobody is every going to raise your rent or tell you to move.
History shows that there is a negative expectation to buying any asset that is valued so high- which in plain English means that if you sell your property, then investment returns are likely to be very low (or negative) for the next 8-11 years.
***PS***I thank you again for all your past and present business. When you want help with anything real estate related, call me at 858-225-7385 or email me at Brad@BradBrinkman.com. You can count on us to give you clarity on how to achieve your real estate goals!
‘He has been there anytime I needed him and I know if I need him again he would be there too. Brad gave 100% from the first time he called me till the sale was done.’
‘We really felt like Brad was on our side throughout the transaction and knew how to navigate the process calmly and effectively’
-Curt and Kim C
‘If you are skeptical on a realtor look no further. You will get what you want and when you want it with Brad. His knowledge on this market is second to none. The most unusual thing about this transaction is his exceptional follow up thru out the entire process, and even after we’ve moved in and got settled. He is one of a kind in this market and this profession’
-Scott & Allison T.
‘Thanks to Brad Brinkman and his team we now have a beautiful new home and a great investment into our future.’
-Ryan & Amanda F.
‘He found my house for me when others could not, in a location that I thought would be impossible. His aggressiveness has given me the opportunity to live in a fantastic place.’
-Trace H., Pilot Hawaiian Airlines., U.S. Navy Pilot
‘You made it easy for us to make this move into our new home because you took on all the worries, handling our transaction with skill and expertise. Specifically we were impressed with your approach to business, treating each and every customer as you treated us; as though we were your most important clients’
‘He made each transaction very smooth and it was great peace of mind knowing I could count on him.’