Buying a house in San Diego means purchasing a piece of the eighth largest city in the United States and the second largest in California. Like many metropolitan areas, size hasn’t saved the city from experiencing a real estate downturn after the burst of the property bubble. But unlike some other areas, San Diego real estate is looking up. The weather isn’t the only advantage this Southern Californian city has to offer. Three factors make San Diego a choice location for real estate investment.
Property prices are down… San Diego saw a significant decrease in property value after the bubble burst. But in adversity lies opportunity. Home prices in San Diego County are down year-on-year from June 2010 by more than 5 percent, according to Standard & Poor’s Case-Schiller Index, giving eager investors a golden opportunity to buy great properties for less.
…And cycling back up. The price drop since last year is significant. The future growth potential of the area is even more important. The city’s housing market appears to be rebounding, according to several expert sources. Local Market Monitor, a real estate research firm, and the Urban Land Institute, a think tank, both peg San Diego as a real estate market to watch. In 2011 alone, prices are expected to rise several percentage points. Experts estimate consecutive growth will last at least several years.
Oversupply. Like their starry-eyed brethren in other zip codes, San Diego developers took advantage of real estate’s boom days by splurging on new construction projects. When foreclosures and defaults became common, the honeymoon ended. Now, property choices abound — many of them at fire-sale prices.
For long-term investors, buying a house in San Diego makes sense. You’ll be getting San Diego real estate for a great price. You’ll own a piece of the Golden State. No matter where you live in the country, that’s a deal to get behind.
