12 Dec San Diego real estate experts predict strong 2015

Get ready for an even stronger San Diego real estate market in 2015.

That’s according to 2015 forecasts by Realtor.com and Trulia, which found that while the days of investor activity dominating San Diego real estate are largely over, price gains and demand will remain strong amid a growing economy in the new year. The forecasts predict the market will continue to experience much of what dominated the market in 2014  as wage, growth, employment, and supply and demand continue to impact real estate in San Diego with gains hovering near 4 percent.

Experts predict a slight uptick in interest rates — about 0.5 percent — in 2015 as affordability remains an issue. Still, demand is not expected to wane in one of the most in demand areas for real estate in the country.

A bright spot: Millennials, the generation of 19-35-year olds who had put off owning their own homes due to a sour job market and recovering economy, may finally be ready to pull the home ownership trigger: That generation is expected to help boost San Diego’s house formation growth rate to 5 percent over the next five years, as they move out of their parents’ homes, rent and buy their own homes, and then begin families.

Some millennials may have a hard time affording San Diego homes for sale, where the median price for a home for sale in San Diego County was $440,000 in October, up 6.6 percent from last year.