What’s the latest news from our San Diego market as we wrap up 2019 and look toward 2020?
2019 has seen its share of ups and downs, with late-summer/early-fall sales dropping quite a bit and the median home price dipping below the year-over-year mark. However, we’re finishing the year strong: Sales in November rose 10% year over year, and the median home price rose 2.5% to $575,000.
A lot of this activity is being driven by interest rates. Rates are hovering around the low-to-mid 3% mark, which is about a full point lower than where they were at this time last year. This is making homeownership more affordable.
Along with low interest rates, another factor that could drive additional growth in the 2020 San Diego market is the increase in conforming loan limits.
Also, VA loan limits are being abolished next year, which is great news if you’re a veteran. Previously, you could purchase a home for up to $690,000 with 0% down. If the home was more expensive than that, you had to pay 25% of the difference between the loan limit and the home’s purchase price. After December 31, though, that all changes. If you qualify for a VA loan, you can use 100% financing for whatever amount you like.
Next month, I’ll provide a recap of the 2010s and discuss what’s changed in real estate and what you can expect in the decade to come, so stay tuned! In the meantime, if you have any questions about our San Diego market or you’re thinking of buying or selling a home, don’t hesitate to reach out to me. I’d love to help you.