The real estate market in Southern California has been a bit of a roller coaster ride over the last decade or two, and right now, it’s a sellers market in San Diego. In May, the median home price in San Diego County hit $530,000. That is an 8.2% increase in just a year.
Really, there are a few things in play here. First of all, mortgage rates are still quite low, as they have been for the last few years, which continues to make home purchases very attractive for buyers. There is also a low unemployment rate in the San Diego area, which means more people have the money and want to buy in this area. Now think back to those economic lectures on supply and demand. According to research by the San Diego Association of REALTORS, there are many more buyers than there are sellers, which makes it a great time for the latter group. Also, home construction has slowed, due to a variety of factors, but bottom line is there is just not enough housing to go around, so that increases the demand, and therefore the price per square foot. So fewer homes being built means a stronger market… for the seller.
Taking a look at the numbers:
- Data Taken Between December 2016 – November 2017
- Largest Gain in Home Sales Price Was in $1M – $1.25 M Range
- Overall Median Sales Price was $532,000, Which is Up 8.6% Over 2016
I Want to Buy in San Diego: Any Ideas For Me?
- Because the real estate market is constantly changing, you need someone on your side to navigate and negotiate on your behalf: a team like Richard Realty Partners. We have an intimate knowledge of the market and can steer you toward your best deal. We also have a great depth of knowledge of the different communities in our area.
- Since the real estate landscape in San Diego is so competitive, sellers often get multiple offers on their property listings, so that means many are going above asking price. It is therefore important to be willing to come to the table with extra cash if you are serious about buying a particular property. It is not uncommon to be caught in the middle of a bidding war, which is why it is important to have an experienced team on your side to assist in negotiating on your behalf.
- The appraisal is important: most banks will lend you the amount at which the property is appraised. So say a property is appraised at $500,000, but the bidding war is now at $550,000: the potential buyer will need the $50K in cash to make up the difference.
- Some buyers decide to make their offer contingent on the appraisal, meaning the offer is rescinded if the property doesn’t appraise for the price offered.
- Another tact to take is to find an area that is not in as high of demand, so the competition for the property won’t drive up the price and create a bidding war.
Let the team at Richard Realty Partners show you why we love this area, and can help you find the property of your dreams for the best price!