Is San Diego A Good Place To Invest In Real Estate?
To put it simply, San Diego is a great place to invest in real estate, especially for property owners looking to grow their portfolio! In reality, it is possible to invest in any market at any time. While prices in San Diego may be high for those looking to rehab, there are other investment strategies worth exploring. Owners of long-term rental property are looking to benefit from the new trends created by the Coronavirus.
San Diego Real Estate Market 2021
Since the country started to recover over eight years ago, real estate in San Diego has been a leader in the national housing market. Each market indicator has seen improvements, except for inventory. While the San Diego real estate market is leading a national recovery, the city has yet to reach full potential. A lack of listings in combination with the pandemic, has created a distinct real estate market in San Diego. Nonetheless, let’s see what next year holds for the real estate market in San Diego.
What is most likely on the horizon is that inventory levels will bring home values higher. For the last 10 years, the lack of inventory has increased prices and it doesn’t look like 2021 will be different. The supply and demand were already unbalanced before the Coronavirus hit; more people wanted to buy than available inventory. As we wrap up 2020, the same is happening except with less inventory than was expected. With the pandemic preventing homebuilders from building, the available inventory got even tighter. With improving unemployment, government stimuli, and low interest rates, encouraged prospective buyers to start searching for new homes. At the end of the day, this scenario has more people looking to buy property in a market with fewer available homes which drives the prices up!
Home prices will most likely go beyond the city’s most expensive neighborhoods. Not only are prices in downtown neighborhoods becoming extremely extensive, but the more people are able to work from home, the more there are looking to move from these areas to more spacious suburban cities. With this being the case, it is possible that many suburban areas throughout San Diego’s real estate market will see an increase in demand as well as home values.
In the End
The San Diego real estate market continues to be a leader in the California housing sector. Local home prices are three times that of the national average. Due to the pandemic, a steady amount of activity has been created by the buyer’s demand. While demand continues, it seems the same number of sellers still aren’t confident in placing their homes on the market. Prices have been rising over the last year, which is why the smallest pullback in home values can create buying opportunities. Potential homeowners and long-term investors may find the latest radical changes in the San Diego housing market to be an asset instead of a barrier to investment opportunities.