Looking outward from San Diego, the national real estate trend is toward balance. The gap between buyers and sellers are diminishing and the market is pushing toward equilibrium. This is a welcomed change from the last five years which have been topsy-turvy and chaotic in the real estate market nationally and in San Diego County.
It will still be a sellers’ market in 2014, given how far we have before inventory is back to normal,” says Jed Kolko, chief economist at Trulia, noting the supply of homes in September was still about 15% below historical norms. “But it will not be as extreme as 2013,” he says.
Buyers will also enjoy an advantage next year as real estate investors are expected to be less of a factor. Why? In an improving market, there are fewer distressed homes, which they covet. According to the Campbell/Inside Mortgage Finance HousingPulse Tracking survey, the investor share of residential home purchases fell from 23% earlier this year to 17% in September.
Looking at the data the disparity between the buyer and the seller is shortening and coming together. Since the upheavals during the housing market crash in 2008 real estate has been a sellers’ market. Now, however, with prices not increasing at the same rate as in the past, real estate value is equalizing toward balance.
In San Diego, as we, at Rent RPM, have reported, we are under the national trend. Home property tax values did not increase at the customary 2%, instead balancing at 0.45%. Foreclosures are at an eight year low, versus the national average which stays at a steady 7%. Also, unemployment in San Diego County remains at 7% as well, which is below the national average of 7.45%.
All of these indicators forecast a strong 2014 for Sothern California, especially San Diego. 2014 will hopefully prove to be a great year in the county, with promises of job growth, fewer foreclosures, and increased values in real estate purchases.
RPM is pleased and excited to be working in the area and in the industry. With nearly 40 years of experience in the area, Rent RPM has grown as one of the strongest and most dependable real estate management company in Northern San Diego County.