Owning a house in San Diego. How many people have dreamt of that over the years? If that’s in your plans, you might be asking yourself: should I wait to buy a house in San Diego?
San Diego, as well many other cities in Southern California, have been a dream of many people ever since its foundation. The warmer climate, the beaches, the job opportunities, lifestyle and overall quality of life have brought many people to it.
So how should you approach the idea of buying a house in San Diego? Is there a right time? Is it a good investment?
Let’s answer those questions for you.
When to Buy a House in San Diego?
When talking about the real estate market in San Diego, there’s a cardinal rule to follow: there’s no time like the present.
So the answer is no, you should not wait to buy a house in San Diego.
Historically speaking, the San Diego real estate market has always been a buyer’s market. That means there are not as many house as people would like to.
That creates an unbalance between supply and demand. With many people wanting to buy but not enough offers going around, the competition between buyers is fierce.
This competition spikes house prices and keeps the market competitive.
So let’s talk about the reason why house offers are low and why that will continue to do so for the foreseeable future.
What Makes San Diego a Buyer’s Market?
Amongst the many factors is the fact that building a house in San Diego is more complicated than in your average city.
A prediction from the San Diego State Housing Department is that around 180,000 new houses should be built every year to met the demand. However, in the last 10 years, not even half that amount has been reached, so this gives you some idea.
So why is it so hard to build new houses in San Diego?
A combination of geography and legislations.
The geography of the land makes materials and landscape more expensive. Also, the space is limited, since the ocean is right at the doorstep. That makes new plots of land rare and costly.
Also, development is highly controlled in San Diego. For good reason, since that’s what keep the life quality so high in the city.
But sometimes, between all permits and fees, things get costly and does not encourage many people and companies to build in the city.
Why not Wait to Buy a House in San Diego?
All these factor contribute to few houses, which is what we call the inventory level.
There are no predictions for when these inventory levels will rise and balance the supply and demand, so San Diego will keep being a buyer’s market for a while.
Also, if you’re considering a 30-year fixed-rate mortgage, rates are expected to rise to 4% by the end of the year. Right now they are 3.19%.
At the moment, there is an influx of offers due to the end of the foreclosure moratorium, so if you plan to make your move, the time is now.
What about from an investment point of view?
It is a very good deal. The housing price in San Diego is expected to only go up in the next years, so even from that perspective, you’re doing a very good deal buying a house now.
In 2021, the appreciation rate reached 20%. That rate is expected to be maintained in 2022.
Buying a House in San Diego
Hopefully now you understand why waiting is not a good idea when it comes to buying a house in San Diego.
House inventories will keep being low, which will only spike the price moving forward. Also, mortgage rates are going to rise until the end of the year, so the quicker you move, the better.
But if you can get your hand on a house in San Diego right now, you can rest assured the patrimony will only value overtime, making it a good investment overall.
And we here at The Real Estate Jedi are ready to help you fulfill that dream. Our combined 20 years of experience can help you locate the best possible real estate deals around.
So don’t waste any more time and give us a call or text us right now at (619) 431-4133. We would be happy to hear from you.