Three Factors You Need to Consider in San Diego’s Real Estate Market
Here are the 3 factors you need to concern yourself with when understanding San Diego’s real estate market. I actually might add another one for fun, since it is San Diego.
Unemployment Amongst 25-34 Year-Olds
This is dictate future housing demand. Â Unemployment in San Diego is high in comparason to the rest of the nation. Â Young adults in general are getting hit the hardest by this recession, especially the men. Â However, the men in San Diego, well a lot of them, have good military jobs.
Still, unemployment claims amongst the young high, which means that there might be a flight away from America’s Finest City. Â Still, investment here is strong, oftentimes creating a city full of renting. Â Volume is also low, but this could just be seasonal.
Overall, San Diego, despite the unemployment rate, will still bring in renters. Â The inventory drop is nothing to be too concerned about.
Local construction activity & spending
Where to build? Â This is the question where do I build it? Â That’s right. Â San Diego cannot stretch out east anymore. Â Developments downtown have been a financial money pit. Â The only way to build is up! Â Gentrification has occurred in many parts of the city already.
We are coming to terms with being the greenest city in America. Â Our solar projects are growing in popularity and LEEDS compliance is driving demand for rehab. Â Even though new construction might not be the best, we are spending on existing structural redevelopment.
Vacancy rates and price changes
I wrote an article about how 74% of sellers are overpricing their homes. Â I also post a market analysis every month to determine the price changes and I will analyse the information for my buyers and sellers.
As of now prices are down, but then again few people buy in the winter. Â It will pick up in February.
Also, know that vacancy rates in San Diego are pretty low considering everyone wants to live here.
San Diego and Washinton D.C. still remain some of the strongest housing markets in the land. Â As far as I see it, there still is a good investment in property here.