Millennials feel at home in San Diego, according to a recent survey by Nielson. The survey’s top markets for millennials include our city in third place.
Continue reading “San Diego is the 3rd Hottest U.S. City for Millennials”
Before making any home improvements consider the cost vs recouping value.
The California Association of Realtors reports that remodeling a kitchen, a bathroom addition, adding square footage, and a deck addition are the upgrades to your home that will recoup at least 50% of their cost.
Declining home values and low-interest rates are the top 2 reasons Californians purchased a home in 2013.
According to the California Association of Realtors 50% of all buyers made their buying decision based on affordability. Only 7% of all buyers purchased because they got tired of renting.
One out of every 3 home buyers feels home prices will increase in the next 12 months. More than 50% of buyers feel home prices will increase in the next 5 years.
San Diego home prices are increasing at a staggering rate, where double-digit increases are not uncommon.
The San Diego Association of Realtors (SDAR) compared detached homes sold in the first quarter of 2013 against detached sold for the same period of 2012. The top 10 Zip Codes with the highest increase in median dollar per square foot exceeded 25% price gain. Solana beach and East San Diego experienced more than 35% price gain. Very active marketplace, let’s look at all 10 zip codes.
What do we make out of these numbers? Housing Inventory is 40% down from a year ago, home prices are at least 20% higher from last year, and 30-year fixed rates are in the 3% range. This confirms that San Diego is in a seller’s market.
San Diego home prices can’t keep increasing at the same rate. In order to sustain double digits growth salaries will need to increase. Also, interest rates will eventually increase, a jump from 3% to 5% will definitely affect affordability.
As of today, many listings are getting multiple offers, and many of them are cash offers. On the other hand, buyers, are having a tuff time getting their offers accepted and they have to make concessions.
It is a very dynamic San Diego market, and we are looking forward to what is next for the rest of the year.
The San Diego housing market has been in a correction for the last 5 years. Many homeowners are waiting for San Diego property values to come back to pre 2005. Unfortunately, that is not happening, and it is not surprising, considering the changes in home financing, local unemployment and buyers’ lack of confidence in the market.
Interesting enough, inventories for San Diego homes and condos are low. Traditionally low inventory meant higher prices, but in today’s environment not only we no longer have stated income financing but any “great deal” is purchased by investors paying cash, leaving traditional residential homeowners out of luck.
Chula Vista is the largest city in the San Diego county and holds a big number of distressed properties. Short Sales and Foreclosures have been dominating the market for the last 5 years.
In Fact, when driving by some of the newest communities in Chula Vista, 65% of for sale signs were distressed properties. Foreclosures or REOs homes got most of the attention, buyers were seeking these listings thinking that the bank (owner) was just looking to get rid of the property and that will sell the house for pennies on the dollar. Well, that want the case, lenders not only are less emotional about transacting a sale, but they will expect to receive an offer that reflects the market conditions.