National home values still lag about 6.8% behind our pre-recession peak according to published housing trends for 2016. Appreciation rose aggressively coming out of the recession, but recently we have slowed to a more normal rate. Inventory is still low in San Diego County, however, and demand will continue to drive values.
Experts say that 1st time home buyers will be pushed into the suburbs by our lack of affordability, but the median age of those buyers will set records in 2016. First timers are already about 3 years older than they were in the 80's.
Lack of affordability will drive rents to their highest median level ever. With interest rates at their still 50-year low hovering in the 3% to 4% range homeowners are now spending a low 20% of their income on mortgage payments, while renters are forking over around 30%. This fact, will contribute to housing values pinned by experts to grow at 3.5% in 2016.
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