If you’re a homeowner who’s considering selling your property in the near future, you’re likely more interested (than usual) in what the real estate market is doing. So, we wanted to provide a market update post to share current trends and feelings of the market here in San Diego. You won’t have to do much research to see that San Diego is an expensive place to live and that prices have continued to rise over the last few years. In fact, average home prices have increased 6.7% from this time last year. So, yes, homes are selling for more and more due to the economy and overall lack of available homes for sale on the market. With that, it’s still a “healthy” market. If you’re a homeowner interested in selling you should be feeling more confident in the decision to sell given this information- because you absolutely have a great opportunity to sell for more than in year’s past.
According to a recent NBC news article, younger millennials and older citizens of San Diego are being forced to relocate and move out of state due to the lack of affordable housing. And for those who have borrowed to purchase a house, over 66% are cost-burdened by their mortgage. The middle class, in particular, continues to struggle as median home prices continue to rise and new construction homes are simply not being built at the pace that San Diego is growing.
Problems being faced due to the local housing crisis:
- People moving away can hurt the economy in a number of ways, especially young skilled workers leaving the workforce.
- Pollution and overall damage to the environment due to the increased number of commuters who have to live farther away from their jobs in city centers to afford a home.
- Many middle-class families simply can’t afford to buy or stay in their homes.
- Cities denying housing growth are contributing to astronomical rent increases.
According to Core Logic; for every home buyer coming into the state of California, three Californians are selling and moving somewhere else.
Opposition to building more affordable homes:
On the contrary, building more homes isn’t the perfect solution either. More homes means more opposition from locals who don’t want developments to threaten the character of their homes. More building also means lash back from environmentalists looking to protect our open spaces and stop the enrichment of developers.
When is the Perfect Time to Sell in San Diego?
Some think that the next economic recession is around the corner. If that’s the case, and you’ve been considering selling, then your best bet is to move quickly. But, experts have been saying that for the last few years and trends continue to rise in regards to home prices in California. The truth is, there’s no perfect time to sell. If you believe that there may be a downturn in the immediate future, we’d suggest speaking to someone about selling while the market is still hot OR refinancing if you haven’t in the last few years (as interest rates have been low). But, there really is no perfect time to sell because sometimes you can’t help your circumstances that lead to your need to sell. Whether a life event has steered you in a different direction, from a new job to the loss of a loved one, or you simply want to move somewhere where you’re equity will take you farther- the decision of WHEN belongs to you.
If you are considering selling, we’d recommend doing your research on what route is best suited for you and you’re family: traditionally with a real estate agent, on your own, or directly to a cash buyer.