There are mixed views about the San Diego real estate. Some believe that in San Diego the real estate market is approaching “the housing bubble”. One thing that must be remembered is that while real estate may be a local matter, the prices are effected to a great deal by the global factors of monetary policies and investments which treat real estate as assets. This kind of factors lead to the inflation of the local housing bubble, and with time, when all the local housing bubbles come together, they give rise to a national housing bubble.
Here are some reasons the future of San Diego real estate isn’t so bleak:
- Housing prices are on the rise: despite all the facts of housing bubbles, the market analysis show that housing prices in general have risen, and are steadily rising. As compared to the usual three percent increase, a growth of almost five to seven percent has been seen in the last decade. The growth shows to be steady, with home price appreciation of +3.2% in 2018 alone while there was a 2.5% growth in the prices of existing homes and a 7% hike for new home sales
- Rise of demand: There has been a steady rise of demand while there hasn’t been any influx in the demand of housing. The San Diego market continues to be a hot spot despite the housing bubble. During last year alone, there was a rise of nine percent, and there have been predictions of a further 4% rise in the coming year. There is no danger of a market saturation just yet. Single family homes are more in demand, with an expected rise of 7% in the future, and hence it can be said that 2018 will be a good year
- Job market growth: The job market of San Diego is rapidly growing and rising. It is offering steady jobs, and has been showing a steady job recovery when recovering from inflation. Therefore, with so many people looking towards a better job market and living standard, people move to the city and hence, look for new property and houses.
- Lower foreclosure rate: as compared to the rest of the nation, foreclosure rates in San Diego are much lower. With a mere 0.6% foreclosure rate against the national 1.6% foreclosure rate, San Diego continues to be a favourite in real estate. Moreover, homes with a negative equity are less in this area. A 6.4% of San Diego residents find them in a negative equity situation, while the in the rest of the nation this number is at 10.4%.
It is often said that what goes up will come down. Similar predictions are often made about the San Diego real estate. However, there are some solid reasons that also point to the fact that this may not be the case for the San Diego market any time soon. While the horrific downturn of 2008 may force most people to believe the worse, there are a number of reasons to stay positive.
Recent Comments