There is no exact timeframe or science to real estate cycles, but this alternation has been going on internationally ever since there were landowners. Today in San Diego and in most of the world, it is a buyer’s market. It has been a buyer’s market for four to five years, as prices have continued to drop. But we are a little unique in San Diego, not just with home sales but also with rentals.
The rental market in San Diego is a very strong one, with a high demand for properties across the board – apartments, condos, townhomes or single detached homes. As long as a rental property is priced at an appropriate market value it will be rented very quickly. It is the simple concept of supply and demand, and currently in San Diego there is a strong demand for rental properties.
Recently, I had a listing that was in escrow and the buyers’ lender required that the buyers rent their three bedroom condo in Hillcrest, in which they were currently living, before the lender would approve their loan. As a listing agent, that is not something you want to hear during escrow because it will delay the escrow process. However, the buyers’ agent put the condo on the market for rent and had it rented within a few days. This allowed them to provide their lender with a lease agreement, which satisfied the lender’s requirement and allowed the escrow to move forward in a timely manner. But it’s not just rentals that are in high demand in San Diego. There is also a high demand for home purchases too.
Many people are under the false impression that because it is a buyer’s market in San Diego, it is a very depressed market and there are a lot of “fire sales” going on. But that is not the case at all, and it is a very active buyer’s market with many buyers for every type of property. In particular, when a property is under $600,000 it is very common for there to be multiple offers as there is a higher percentage of buyers who qualify for this price point. Within this price range it is very common for a listing agent to get offers immediately after they have listed the property.
I find myself educating many people on the market in San Diego, particularly since I do a lot of relocations. When someone is coming from another state, they often do not believe how high the prices are and how active the market is here. Recently, I had a women come from out of state to buy a home here. She wanted a minimum three bedroom, two bathroom 2,000 square feet home on a large lot for under $200,000. Even after I explained to her in detail about the market here, she was still in total disbelief.
Keep in mind, that if you or someone you know is looking to buy or rent a home, it is a very active market. We are lucky to be living in a city that is a very desirable one. In addition to the local San Diego population wanting and needing to buy and rent properties, there are many people who want to buy a second or a retirement home, and just relocate to San Diego. This demand for housing keeps our San Diego real estate market extremely active.
Until we meet again, enjoy your home life.
Trent St. Louis is a licensed Real Estate Agent and a member of the National, California and San Diego Association of Realtors. You can reach Trent at SpecialAgentTrent@gmail.com or at 619-300-1621 at his office, The Metropolitan Group. (CADRE#01273643).
