Despite higher taxes being a part of the new fiscal crisis bill, could the new deal actually help boost the San Diego real estate market?
Obviously the last minute deal didn’t offer the outcome everyone wanted but it is certainly far less damaging than it could have been if we fell off the fiscal cliff. In fact, just the fact that a deal was able to be struck is providing an instant boost to confidence.
Sure there will be higher taxes, especially for many in San Diego County where there are so many high income earners, but at the same time this will also make real estate even more desirable as Americans rush to find a shelter from taxes and boost their returns and incomes to offset other decreases. Plus, the deal now restores confidence in buying homes in Southern California to foreign buyers who have been sitting on the sidelines to see how talks played out.
The extension of tax breaks for businesses who acquire new property in 2013 also suggests we are warming up for a very active year for the San Diego commercial real estate market too.
This will provide a wide boost for the local economy and create more opportunities for residential real estate investors as well. It offers velocity for those flipping houses, and growing wealth for those holding land as well as a great chance for San Diego home owners in the path of development to cash out.
Expect the surge in property sales and prices to continue in downtown San Diego, on the coast in areas like La Jolla, as well as perhaps even more pronounced in blossoming parts of the county such as Escondido and El Cajon.
