Can you believe it?….of course you can! So many people want to live here, it is truly an amazing city. San Diego had the third highest annual home price increase in the nation in August, a distinction not reached since 2014, said a top real estate index S&P Dow Jones Indices. The report was released in the first week of November 2017.
***So what does this mean to you?***
It means that if you own residential real estate in San Diego County, then the value has risen about 7.8% in the past year, according to the S&P Case-Shiller Indices. Only Seattle and Las Vegas had bigger increases in the 20-city index.
In the last two years, the San Diego region has averaged around 10th place in the index, making August’s jump noteworthy to industry watchers. San Diego’s yearly increases outpaced the nationwide gain of 6.1 percent and the rest of California.
***What do ‘indicies’ really measure?***
The indicies go beyond the median home price of a region, they evaluate home transaction prices to track repeat sales of identical single-family houses as they turn over through the years.
***How does San Diego compare to other major cities?***
You may remember from past newsletters that San Diego’s housing market is affected by lack of available homes for purchase. San Diego hasn’t quite reached the same pre-recession peak from the index quite yet. Whereas other places in California, like San Francisco, already have. Seattle had the biggest yearly increase at 13.2 percent, followed by Las Vegas at 8.6 percent. Los Angeles and San Francisco had 6.1 percent increases. The lowest increases were in Chicago at 3.7 percent and Washington, D.C., at 3.4 percent.
The low home inventory made the past summer difficult for many home buyers, and because of high prices, saving a suitable down payment can feel like trying to hit a target moving impossibly fast for many would-be buyers, especially to those with already lean budgets. The median home price in San Diego County was $535,000 in September, data from CoreLogic.
***Should I buy or invest in San Diego residential real estate right now?***
If you are looking to be in a home or investment for at least the next 5+ years, then yes, you should because even with a price drop, the interest rates will likely increase. For those clients of ours who rehab properties and resell them, forecast that working for only the next 3-6 months…stay tuned for further info. If you are looking to buy and know you have to sell in the next 2-3 years, then no do not buy.
***Should I sell right now, what is your opinion and strategy?***
That depends. It is a great time to sell in general because per above, most of San Diego is close to catching up to its pre recession peak. It is a great time to sell and buy something else, many of our clients are selling their rental properties and doing a tax exchange into another property, which they plan on moving into after they rent it for a year, and then selling their personal residences next summer. Call us if you would like to discuss this strategy.
Finally stay tuned in our next newsletter as we will be discussing what the below chart means to you! Or call or email us now if you are interested in knowing more!
PS #1 November is an amazing month. We have the opportunity to express appreciation to those who served in the armed forces on Veterans Day, and for the holiday of Thanksgiving, which is set aside for the expression of gratitude to family, friends, and to the Goodness within ourselves (the Goodness which keeps us swinging our feet out of bed every day to help serve others and add value to this world!)
***I thank you again for all your past and present business. When you want help with anything real estate related, then call me at 858-225-7385 or email me at Brad@BradBrinkman.com You can count on us to give you clarity on how to achieve your real estate goals!
‘He has been there anytime I needed him and I know if I need him again he would be there too. Brad gave 100% from the first time he called me till the sale was done.’
‘We really felt like Brad was on our side throughout the transaction and knew how to navigate the process calmly and effectively’
-Curt and Kim C
‘If you are skeptical on a realtor look no further. You will get what you want and when you want it with Brad. His knowledge on this market is second to none. The most unusual thing about this transaction is his exceptional follow up thru out the entire process, and even after we’ve moved in and got settled. He is one of a kind in this market and this profession’
-Scott & Allison T.
‘Thanks to Brad Brinkman and his team we now have a beautiful new home and a great investment into our future.’
-Ryan & Amanda F.
‘He found my house for me when others could not, in a location that I thought would be impossible. His aggressiveness has given me the opportunity to live in a fantastic place.’
-Trace H., Pilot Hawaiian Airlines., U.S. Navy Pilot
‘You made it easy for us to make this move into our new home because you took on all the worries, handling our transaction with skill and expertise. Specifically we were impressed with your approach to business, treating each and every customer as you treated us; as though we were your most important clients’
‘He made each transaction very smooth and it was great peace of mind knowing I could count on him.’