Zillow came out with their Hottest Housing Markets of 2016, and San Diego didn’t make the list:
They based their ‘hotness’ on a combination of employment, recent income growth, and the expected increase in the Zillow Home Value Index.
They expect that the San Diego HVI will rise 2.7% this year, and I think our employment and income numbers should at least be steady:
Zillow isn’t considering retirees into their algorithms – especially the rich folks who want great weather to live out their life. Any of them who have grandkids in the Southwest will give us a look, and when they compare to Los Angeles or the Bay Area, they will like our prices much better.
The towns in the Zillow Top Ten have expected HVI increases of 4% to 5%.
At the end of 2016, let’s see how San Diego compared to their list of ten. I say that we beat at least half of them – in spite of fewer sales than we had in 2015.