San Diego Homes

San Diego Homes for Sale: 2011 Home Market Predictions

With the coming of the new year, we’re all looking to see what  2011 will bring for the Real Estate market. Some of the best minds in Real Estate and investments have weighed in on what the 2011 San Diego home market future will bring…

In February 2010, Warren Buffett, who is one of the most successful investors in the United States, wrote, in his annual letter to the shareholders of Berkshire Hathaway, “Within a year or so, residential housing problems should largely be behind us.”. So in 2011 the housing market slump should be over according to Buffett.

What do you think we’ll see in 2011? The number of foreclosures has been declining for the past couple of months. So the high inventory of discount houses is going away soon. This is good for sellers but bad for buyers. Without the plentiful, inexpensive distressed inventory, buyers will have no choice but to purchase non distressed, full priced homes.

Standard & Poor’s economic analysts have predicted that housing prices will fall another 7% to 10% nationally in 2011. What will cause the decline in prices? It maybe unemployment and excessive inventory caused by short sales and foreclosures.  S&P’s credit analyst Erkan Erturk says that when compared to the last 2 to 3 years the price declines are slowing.

San Diego County’s housing market is fairing better than the rest of the US. Whether it’s our wonderfully sunny and temperate climate or the fact that our beach areas are built out. San Diego is one of the strongest home markets in the US.

November unemployment figures for San Diego were up to 10.4%, up .1% from October and at the same level as November 2009. These unemployment figures only count the number of people receiving unemployment payments at this time. There maybe an actual higher number of unemployed people in San Diego County. Will these figures impact our San Diego home market? Will we be seeing more sort sales and foreclosures because of these unemployment figures?

What the San Diego home market will look like in 2011 is still to be seen. Having a veteran Escondido Realtor like Mindi Landry with 34 years of experience helping buyers and sellers in your corner is essential in this market. She’s seen up markets and down markets and every market in between too! She’s an experienced negotiator, and has negotiated many short sales during her 34 years as an Escondido Realtor. Give Mindi a call at 760-737-3767.

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