San Diego remains one of the most popular U.S. cities for real estate investing and buying a home but what is really going on in the local market and how are things shaping up for buyers, sellers and investors.
Buying a Home in San Diego, CA
Incredibly affordable homes and unbelievably low mortgage interest rates make buying a home in San Diego very attractive right now. According to Trulia the median home price currently sits at just $340,000. At today’s interest 30 year fixed rates with 20% down that means a monthly principal and interest payment of just $1,219.88. However, it is crucial to note that home prices have already risen 7.9% since last year and have been steadily going up for the last 4 months in a row. This is a trend expected to speed up, meaning those waiting another 18 months to buy could easily be paying $100k more for the same home compared to last year, not counting another $100k or so in interest if rate go up.
Selling a Home in San Diego, CA
While this is a fantastic time for buying a home in San Diego sellers still have their work cut out for them with banks increasing unhappy about working on alternative foreclosure solutions with underwater homeowners in California. Unfortunately despite desire to buy many would be home buyers simply can’t get a loan anymore which is a factor unlikely to change in the short term. This has already lead to a lag in the number of area home sales, dropping 3.7% since last year. Together with the looming deadlines for short sale payouts and tax incentives the opportunity to exit gracefully is rapidly fleeting away.
Investing in San Diego Real Estate
Real estate investing in San Diego remains incredibly attractive with plenty of distressed properties and demand which creates the ideal conditions for flipping houses. In the last 12 months CoreLogic reports that the number of completed foreclosures has declined to just 7,873 and competition for REOs is tough. However, RealtyTrac reports as many as 1 in every 157 households in some San Diego zip codes receiving a foreclosure filing in June 2012 alone.
