The news is both good and bad for San Diego real estate. However if you are looking to buy a home in San Diego this year, then you would be pleased to hear that the real estate values are doing pretty well now, when compared to the trend shown in the last few years. For example, if you examine the housing market report from Dataquick, in San Diego County, you can see that the median home price in 2013 was $415,000, which means there has been a steady increase of about 16% from 2012. Similarly, the foreclosure rate has also come down. The value for homes has risen impressively in 2014, but the demand is for condos because they are considerably cheaper, though the residents will have to share a lot of facilities.
A lot of people are currently renting homes, but the low mortgage rates are motivating people to buy homes. San Diego homes are not cheap, and the bridge between the mortgage rates and monthly rent is narrowing.
What is in store for San Diego real estate?
Experts in San Diego’s real estate market claim that the market will remain fundamentally strong – Homes stay for shorter periods in the market and have low interest rates. The median price for single-family homes has reached $500,000 in the month of May 2014. They say that now is the time to invest in San Diego. Resale homes stay in the market for a short period of 40 days. A strengthening economy and the moderately increasing price have made the San Diego housing market competitive. With quality jobs becoming available, better tourism opportunities and the sorry state of distressed homes rapidly declining, San Diego’s market is going to draw a lot of interest to buyers.
One of the basic factors affecting real estate in San Diego – or anywhere in the world, for that matter – is the economy. The local economy and the national economy are both major deciding factors. If an area is developing, then there will be plenty of construction jobs. If the companies are hiring, there will plenty of homes for sale and new commercial complexes will be built.
The average price per square foot for San Diego is $350. This is an increase of 8.7% when you compare to the same time last year. The most popular neighborhoods are Pacific Beach, Rancho Bernardo, Carmel Valley, Mira Mesa, and University City. The average listing price in Pacific Beach is $834,100, Rancho Bernardo is $552,851, Carmel Valley is a bit high at $1,159,303, Mira Mesa at $398,142 and University City at $551,263.