2013 is over with a new year dawning heralding new changes to the real estate market of Southern California and in particular San Diego County. Now that it is past, 2013 brought a lot of changes and mostly normalizing effects to San Diego County, especially when compared to other markets in the state and nation as well as historically since the Great Recession in 2008.
2013 marked one of the lowest foreclosure rates since 2008. Real Estate prices increased over 15%, however property taxes are projected to be less than a half percent increase, at 0.45%. With unemployment dropping, homes earning equity, and prices normalizing, it will be an interesting market to watch.
Currently home prices are at a median of $470,000 with a predicted increase in the market. According to Michael Lea, real estate professor at the Corky McMillin Center for Real Estate at San Diego State University, “Supply will rise as more households with positive equity seek to sell their homes. Investor purchases, which accounted for 26 percent of sales in November, will continue to moderate. Mortgage rates are likely to rise slowing demand. Offsetting the downward pressure on house prices will be a continued fall in distressed sales and a higher percentage of sales in higher priced brackets. The net effect will be a 4 percent rise in the median house price.”
For the private owner and investor, this means that more real estate should hit the market at reasonable prices. With price increases predicted throughout the year and the area, and with foreclosures on the decline, San Diego County continues to be one of the most attractive markets nationally.
Rent RPM predicts that 2014 will be a great year for our clients. The market is open to buy or sale, depending on different goals and desires of the property owners. The rental and leasing market remains strong with decreases in unemployment throughout the county and region. As always, Rent RPM is ready and willing to assist clients and other companies and property owners with all of their real estate property management needs, regardless of what the demands are.