Real Estate
BY TRENT ST. LOUIS
The real estate market has historically always gone in cycles. This means that housing prices go up and they go down. When prices are up, it is considered a seller’s market and when prices are down, it is a buyer’s market. There are of course other variables that play a part, like mortgage interest rates; but housing prices are the most important factor that defines the market.
Right now in San Diego we are still in a buyer’s market, in that the prices are low. Although there has been some modest prices increase in the last year, housing prices in San Diego are still significantly down from six years ago. In addition, mortgage interest rates are still historically low, which allows buyers to borrow money at very affordable rates. Low mortgage interest rates can also allow buyers, who may not have been able to qualify for a home mortgage previously, the opportunity to qualify for a home loan at today’s low interest rates.
Supply and demand is another factor that affects the real estate market. Right now in San Diego, there is a low inventory of homes on the market and a high demand for them. We have lots of buyers and not a lot of homes for sale. So there is low supply and a high demand, which is slowly contributing to the rise in housing prices.
In fact, it is very common for a property listing to have multiple offers on it. If a house is listed at the proper price for today’s market, it will typically receive offers within the first week or two and be swept up by one of the many buyers that are out there searching for a home. There have also been less foreclosures, which are bank owned properties, and short sales in the last several months, which has added to the lower number of properties that are on the market.
Location is another factor in the real estate market. For example, in the metropolitan area, which is basically all the communities surrounding Balboa Park, like Hillcrest, Mission Hills, University Heights, Kensington, North Park, Bankers Hill, South Park, Adams North and Normal Heights, the market has been extremely active. But all other areas from the South Bay to North County have had the same trend in the market with regard to lower inventory and a higher demand with a lot of activity.
In general people think of a buyer’s real estate market as being slow and depressed, which in many cities throughout the nation is the case. But in San Diego, we are unique with a very active buyer’s market. The buyer’s market for us here just means that prices are still down and mortgage interest rates are still super low, making it a wonderful time for buyers to purchase a home or investment property.
The current buyer’s market affects all types of real estate. Whether it is a condo, a single home, an apartment building or a commercial property, the prices are significantly down from six years ago. No matter what type of property you are considering buying, now is an amazing time to purchase a property while home prices and mortgage interest rates are low. So if you are a home buyer or a real estate investor you should take advantage of the current window of opportunity to purchase while we are still in a buyer’s market.
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 Associations of Realtors. You can reach Trent at The Metropolitan Group at 619-300-1621 or at SpecialAgentTrent@gmail.com CADRE#01273643.
This is a great summary not only of the real estate market in the San Diego area, but also for most of the country as well. While I feel really bad for the people who bought houses from approximately 2002 through 2008, people who have purchased homes in the last couple of years have received some great deals. Combine the great deals they have received with historical loan interest rates, and these people are “sitting pretty”. That of course is no consolation to those who bought the peak of the cycle. As the author mentions though, the cycle will be repeated.
I’m from NYC and I’m planning on relocating to southern California after I graduate in a few years. Yeah, it’s a few years ahead, but I’m just planning for long term for my life ahead. I can’t decide between L.A or San Diego. I’ve heard crime is pretty horrible in L.A with the gangs. So I just want to know what it’ll be like living in these two cities. I’m not restricted to these two cities, but I just prefer them more and in southern Cali. I don’t like humid weather, but I can deal with hot as long as it’s not like 90+ degrees everyday in the summer like in Houston. I also like urban-suburban environments and would prefer an Asian community there if possible. I know L.A has a Chinatown. I recognize I might be asking for too much. I’ll be graduating as a computer engineer.
The things that are most important for me are:
– Affordable housing/real estate
– Security/Lower crime
– Decent salary income
– Affordable living
– The locals