Real estate trends can be very fluid, so keeping abreast of the latest developments is essential if you are to ensure that your property purchase is a wise investment. Here is everything that you need to know about real estate trends in San Diego in 2018.
Increased demand and rising home values
The President of the California Association of Realtors, Geoff McIntosh, has predicted that solid job growth and favorable interest rates will drive a strong demand for housing in 2018. Home sales are predicted to increase, as are house prices with the median home price set to reach approximately $561,000 which is growth of around 4.3%.
One key factor driving up house prices is a drop in the issuance of building permits. Statistics from the San Diego Union Tribune shows that there was an 18% drop in building permits issued from 2016 to 2017, particularly for condos, multi-family units and single-family residences. This means that there has been significantly less new construction, and by default, greater demand for existing properties of these types.
Be prepared to pay above the asking price
Unfortunately, a tighter market that is very much in favor of the seller means that competition is fierce and for many properties, the asking price is just a jumping-off point for offers above it. Some statistics show that as many as 46% of homes under $300k sold in 2017 fetched above the asking price and this trend is predicted to continue for 2018.
And move quickly
In 2017, the average house in the under $300k asking price bracket stayed on the market for just 8 days. Properties between $310k and half a million dollars remained on the market for just 10 days. Therefore, keeping a close eye on what becomes available and acting quickly is essential if you are going to secure the home you have set your heart on. Again, an experienced realtor is very beneficial in a fast-paced housing market as they tend to know which properties are coming onto the market before they are advertised and may be able to get you a viewing ahead of the masses.
Best areas in San Diego to buy property in 2018
So, where are the best areas in San Diego to purchase property in 2018? The answer to this question really depends on your budget and the needs of you and your family. Whether it is proximity to the ocean or a place of work, a location in a great school district, an area with a low crime rate or somewhere packed with amenities, there really is a neighborhood to suit everyone in San Diego.
Here are some of the areas which are regularly cited among the best to live and own property, including their median home value as of 2018 so you know if it fits with your budget.
Miramar Ranch North – median home value $851,500
Home values in Miramar Ranch North have risen 12.9% over the past year and market trends predict an increase of another 6.3% for 2018.
Normal Heights – median home value $521,000
Home values in Normal Heights have risen 13.4% in the last year and are predicted to go up another 6.2% in 2018.
Sabre Springs – median home value $638,300
Home values in Sabre Springs have risen by an impressive 19.4% in the last 12 months and are predicted to increase by approximately 6% again for 2018.
Mission Valley East – median home value $440,800
Home values in Mission Valley East have risen by more than 8% in the last year and estimates suggest residents can expect them to increase by another 5% during 2018.
Grantville – median home value $315,100
For an area with a median home value considerably less than the average for San Diego, Grantville has still seen a considerable increase in property worth with home values having risen 11.5% during 2017. 2018 is expected to be a year of further growth, with values predicted to increase by another 6-7%.
Serra Mesa – median home value $611,100
Home values in Serra Mesa have increased by 13.7% in the last 12 months. Further improvement of around 6-7% is expected for 2018.
Mountain View – median home value $410,400
Home values in Mountain view rose by over 16% during 2017 and are estimated to increase another 6-7% during the next 12 months.
La Playa – median home value $1,764,400
A very desirable area, La Playa home values went up almost 14% last year and predictions suggest that homeowners here will be able to enjoy another 6-7% on their property value by the end of 2018.
For the very latest, up-to-the-minute advice regarding property investment in San Diego, contact us and speak to our realtor who will have the local knowledge needed to be on-point with the best places to purchase.