According to a recent UC San Diego study, San Diego housing costs will decline by 12% by the end of 2023.
SAN DIEGO — According to a recent UC San Diego study, San Diego housing costs will decline by 12% by the end of the year.
According to the study, data from online searches might serve as a preliminary predictor of future trends in the housing market.
Researchers claimed they can predict home values by monitoring key words on Google, such as “purchasing a house” and related terms.
A professor of finance and economics at UC San Diego, Allan Timmermann, is monitoring the frequency of online house searches by prospective purchasers.
According to Timmermann, “Historically, we find that there is a stable relationship between internet search activity and house prices three, six, or twelve months later. The indication that search activity is declining is a sign that demand is slowing down, at least historically, it has been linked to decline in prices.
According to the report, national house prices will decline by 5%.
According to Timmerman, San Diego’s property prices are declining more rapidly than the national average since the city saw the worst market overheating during the epidemic.
According to the analysis, housing costs will also drop in Phoenix and Las Vegas. Yet, it is anticipated that housing costs will increase by 2% in Kansas City and other Midwest regions.
A recent research by “Today’s Homeowner” found that 17% more San Diego houses were valued at $1 million or more in 2021 than they were in 2015.
According to Hailey Neff, researcher for “Today’s Homeowner,” 28.8% of homes in San Diego are more expensive than $1 million, yet only 16.3% of residents can afford them. As a result, there is a housing affordability problem.
Even though San Diegans earn reasonable wages, Timmermann explained that when prices rise, they must spend a larger portion of their income on housing because rent is so high.
But if Timmermann and the study’s forecasts come to pass, home in San Diego might eventually become more reasonably priced.
I don’t know if we are any better or worse than weather forecasters, therefore all predictions should be taken very seriously, Timmermann said.