2013 was a great year in the real estate industry throughout all of Southern California, especially San Diego County. Low interest rates combined with limited real estate properties entering the market culminated in increased real estate appreciation. In fact, 2013 was one of the best years for real estate appreciation since the early 2000s.
Mark Goldman, a real estate professor at San Diego State University and a loan officer,stated: “Last year, we saw home values catch up to where they should have been if we didn’t have that market correction in the last of the 2000s.”
In 2013 the total number of homes purchased throughout the county was 42,702. That number was up from 2012 and the highest since 2006. This is significant when remember that the housing market crashed in 2008, which means that the market is returning to pre-crash and Great Recession days. The appreciated value of real estate was 24.1%, another record since the 2008 recession, and the median price of a home increased to $420,000.
Valley Center and San Diego saw the greatest appreciation in real estate while on average the entire county appreciated. Only a couple areas depreciated, and appear to be not only statistically insignificant, but should also show appreciation over the course of 2014.
With this in mind, remember that the end of the year tapered off compared to the rest of 2013. There are significant reasons why, including the Government shut down in October. However, the prediction that 2014 will be a stabilizing year remains intact. Appreciation is predicted to slow down and return to a normalized rate and there are downward pressures on the market with increased interest rates. Ultimately this should result in lower quick-flips in the market and in the area.
Rent RPM is pleased with the growth of the market in 2013 and looks forward to working with new property owners and investors in 2014. With the market normalizing, investors should be looking at long term plans, holding onto properties, and earning stable income before selling for profits. 2014 should be a great year in the San Diego County real estate market and Rent RPM is excited to be on the forefront.