With more homes not selling – otherwise known as growing inventory – buyers can finally exert some influence on pricing (they’ve had virtually none over the last 18 months). This should cause the pricing trend to stay fairly flat, with sellers being reluctant to lower their price enough, causing only the better deals to sell. During the frenzy it was different – everything was getting gobbled up, right price or not.
The San Diego ZHVI in April was up 12.6% YoY:
They predict it will increase 4.1% between February 2014 and February 2015, which is a logical guess in a cooling market – though the statistical comparison to post-frenzy numbers will just confirm that pricing has been flat for a while.
But because the month-over-month San Diego ZHVI makes an unusual correction in their prediction below, rates are unlikely to drop further, and sellers’ pricing reluctance, I’m taking the under on their 4.1% appreciation by February, 2015: