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San Diego expected to be California's hottest housing market in 2020, despite cooling

Posted: 2:58 PM, Jan 02, 2020
Updated: 2020-01-02 18:16:47-05
Zillow: San Diego housing near 'crisis level'

SAN DIEGO (KGTV) -- Despite a cooling trend, San Diego is expected to be California’s hottest housing market in 2020, according to a new Zillow report.

According to the report, 39 percent of experts surveyed expect home values to grow slower than they do nationally while 37 expect home values to grow at about the same rate.

Meanwhile, 25 percent of the panelists expect home values to grow faster than the expected national rate.

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Although San Diego could to be the hottest California market, experts on the panel said they expect housing to continue a cooling trend throughout the Golden State.

Nearly 29 percent of those surveyed said they believe San Diego home values will fall in 2020.

“Having subjected buyers to a crucible of fierce competition for multiple years, many West Coast markets hit an affordability ceiling that set off declining home values in the most expensive of these," said Skylar Olsen, Zillow's director of economic research.

"Indeed, this price correction -- a clap back from having appreciated with too much exuberance in the recent past -- pushes many previously hot markets to the bottom of our experts’ list.”

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The housing market experts believe will perform the best in 2020 is Austin, Texas, followed by Charlotte, North Carolina, Atlanta and Nashville. Dallas and Phoeniz also tied for the fifth position.

To get the results, Zillow surveyed 110 economists and real estate experts.

Click here to read the full report.