The San Diego real estate market is heating up and home prices are rising year after year. Studies show that San Diego is actually among the top areas where real estate market is doing well in the country. There are claims by some real estate experts that real estate market in San Diego has fully recovered from the 2008 crisis. Whether this is true or false, the fact remains that real estate in San Diego is doing very well and it is worth keeping an eye on. For instance, in the first quarter of 2016, the median home price in San Diego was about $554300, which was almost double the national average home price. It is worth noting that real estate properties in San Diego are expected to continue to appreciate more than in other parts of the country.
The San Diego real estate market is currently the most favorable for investors looking for both long-term and short-term investments. According to the recent studies on real estate market in San Diego, home prices are expected to continue rising in the coming years and over time become more and more unaffordable.
Homeowners and San Diego real estate investors are making good money because properties are selling like hot cakes in the region. The area has also registered the highest home equity growth after the recession. For instance, homeowners in San Diego enjoyed an annual home equity gain of $452565 in 2015, which was far much higher than the national gain of $15781 in the same year. When you compare the number of properties in some stage of foreclosure, San Diego still has the lowest numbers than other popular cities in the country such New York as explained by RealtyTrac.
The skyrocketing home prices in San Diego have made it difficult for the Millennials to buy homes there. Additionally, homeowners in San Diego are selling their homes so that they can buy cheaper ones in other parts of the country and still have some money to spend. Studies show that the amount homeowners in San Diego make after selling their homes can buy up to three similar homes in other big cities in the country. Therefore, for many homeowners in San Diego, it has become a profitable business to sell their homes and buy a cheaper one in other areas. After all, why live in a condominium in San Diego when you can sell it and buy a spacious home in other parts of the country? However, it is worth noting that real estate investors are busy acquiring more properties in San Diego so that they can sell in the future and make profits.
One of the key factors that have contributed to the rapid growth in the market is the prevailing healthy economy in the region. More so, the unemployment rate in San Diego is lower than the rest of the country and it is decreasing year after year. It is also worth noting that the job rate in San Diego is higher than the national average and therefore many locals can afford to buy such homes.
If you are from other parts of the country and you are looking for San Diego homes for sale, you should be ready to part with a good amount of money because properties are quite expensive. Rental properties are equally expensive in the region and those planning to rent in San Diego should be prepared to pay up to double what they could have paid in other big cities in the country. Property managers and realtors also charge high fees in San Diego, making buying or renting real estate properties in San Diego unaffordable to people with limited income. If you are planning to buy your first home here and you have a limited budget, then it is wise to consider other areas outside San Diego.
When you look at the real estate market in San Diego from an Investor perspective, the market is doing incredibly well. More houses are being constructed in the region, and there are enough properties for those who can afford. The real estate market is expected to grow throughout 2016 and investors are expected to make handsome profits. It is, therefore, the right time for those planning to buy properties in San Diego to do so before prices become too high. It is obvious that prices are not coming down anytime soon.