By Ryan Zuckerman, Homehub.com
After a few years of a down economy and real estate market, the sun is rising again, as things turn around for the housing market in San Diego. How you might ask? Here are HomeHub.com's top three reasons why we believe the future is a bright for the real estate market in San Diego.
Remember this, perception is reality. Right now, most articles, most news stories and buzz in the business is that the housing market has recovered and has been doing so for the past year. The more positive news people hear, the more it becomes their reality. These stories are coming out because statistics show the San Diego market has improved over the past year. Now that it has become a reality, people can live the American Dream again and feel comfortable to get back out there and start house hunting.
What statistics are all of the local and national media outlets basing their information on? "Previously owned" home sales, which have increased the last 16 months straight, based on a year over year look back at each month. That means for the last 16 months the housing market has outpaced the previous year, clearly indicating that the market is trending upward.
Also fueling the recovery is the current lack of inventory in the greater San Diego area, from east to west. Remember your college economics class and the lessons of supply and demand? This market is a great example. A normal level of “supply” is around six months, but San Diego currently has a supply of only 3.2 months. This cycle is not just happening in San Diego, but in many markets across the country inventory is currently at “normal” sustainable levels. This means there is not an oversupply of homes anymore. This is changing the climate from becoming a seller’s market to more of a neutral market. This change is an extremely positive sign because it is signaling a change in the supply and demand. The supply is decreasing while demand is increasing.
Do you need financing? Great, because interest rates are at all time lows. Instead of interest rates moving up, they have remained at some of the lowest rates EVER. This allows more people to be able to qualify for a home, since their payments will be less. With rental rates continuing to increase, it has become more affordable to buy in many sub-markets in San Diego. Ask yourself, what are you paying for rent? Now see what kind of home you can buy paying the same rent.
Bottom-line, it's a sunny time to get into the market. You must move fast before the sun sets and the home you want is no longer there, or interest rates and prices go up. There is a strong possibility that you can afford your American Dream in 2013.