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Blog: REAL ESTATE NEWS

Why It Could Be Beneficial to Invest in San Diego Real Estate

San Diego is world renowned for it’s beautiful coastal wild life, historical and modern cities, and of course its sunny, beach culture. There is no doubt that San Diego attracts tourists and visitors from all around the world to experience the San Diego lifestyle. Both locals and outsiders can both agree that San Diego is a beautiful place with an overabundance of exciting activities and new adventures to embark on, but one also has to wonder if San Diego is also a good place to invest in property or to own a home?

Currently, the overall US housing market is thriving and many individuals are looking to invest in property all over the country, but of course there are some specific location that would be better than others to invest in property. Experts conclude that San Diego housing prices will continue to increase, and even if there is an unexpected decline, it will still be above the rate of inflation. In the NAR Quarterly Report released in February, 2016 it was that San Diego ranked 5th in the most expensive housing markets in the United States where the median sales price was up 5.9% at $486,000. However like many other cities, economists predict that San Diego’s surge up in home prices will start to slow as some estimate that it is close to peaking.

In terms of rent prices, San Diego was ranked number 10 in American cities where rent was growing the fastest. There is a high level of competitiveness among renters in San Diego since the rent-ability is only around 5% in latest statistics, however this can mean great news for property investors and landowners. If the property you are investing in is decent condition in a fairly nice location, you will receive many applications and options to rent out your house or apartment. With this level of competition and demand, owning a property and renting it out is an effective and smart way to have another solid source of income and increase cash flow.

San Diego is also one of the few places in the US where out-of-town investors are encouraged and willing to invest and buy property. Due to San Diego’s low crime rates, comfortable climate, and a bustling economy in the tourism, technological, and medical fields, non-San Diegans have goods reasons to safely invest in property with minimal risk. Finally, the cultural and ethnic diversity in San Diego makes its a very warm and welcoming city; on top of which, San Diego is also renowned place to live for it’s top rated schools, efficient public transportation, and is environmentally aware and friendly. There is no question that San Diego is a great and amazing city and owning or investing in a property here would only be beneficial and positive!

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San Diego Home Prices Rise More Than The Nationwide Average

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In March, San Diego’s home prices raised an impressive 7.7% from the past year. This ranked San Diego in the top 10 cities of highest yearly price increases. Home prices increased all over California. San Francisco, Los Angles and San Diego were all above the national average and they show no sign of slowing down. In April, San Diego’s home prices continued to grow, sitting 8.6% higher than the year before. That pushed San Diego’s median home price to $570,000 which broke the record that was previously set in March. This increase was led by the escalating cost of condos. Condo prices increased by 11.7% and have a median price of $430,000.

S&P CoreLogic Case-Shiller Indices for March 2018

Yearly increases by city

1 Seattle — 13 percent

2 Las Vegas — 12.4 percent

3 San Francisco — 11.3 percent

4 Denver — 8.6 percent

5 Los Angeles — 8.1 percent

6 Detroit — 7.9 percent

7 San Diego — 7.7 percent

8 Tampa — 7.5 percent

9 Phoenix — 6.8 percent

10 Portland — 6.7 percent

11 Atlanta — 6.2 percent

12 Charlotte — 6.2 percent

13 Minneapolis — 6.1 percent

14 Boston — 5.8 percent

15 Dallas — 5.8 percent

16 New York — 5.2 percent

17 Miami — 5 percent

18 Cleveland — 4.6 percent

19 Washington, D.C. — 3 percent

20 Chicago — 2.8 percent

Nationwide — 6.5 percent

San Diego Real Estate Report: July 2016

July’s San Diego real estate market in review: As of July 2016, the average detached home in San Diego County sold for $565,000, up 2.9% from the previous year.

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As of July 2016, the average attached home (including condos, townhomes, and twinhomes) in San Diego County sold for $382,500 , up from last month.

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The average detached home in San Diego spent 37 days on the market.

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Condos, twinhomes, and townhomes in San Diego spent an average of 27 days on the market.

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As of July 2016, we are in a seller’s market. On average, a seller of a detached home in San Diego County receives 97.2% of the original list price at the close of the sale, slightly down from the previous month.

 

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As of July 2016, the owners of attached properties (condos, twinhomes, and townhomes) retained 98.2% of the original listing price, up from last month.

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The inventory of homes in San Diego County has gone slightly down, which is consistent with what we know that inventory is tight.

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The supply of attached properties continues to decline.

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Are you interested in seeing this breakdown for your San Diego community or zipcode? Let us know!

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