Forbes.com recently came out with a study predicting a 2% increase in median home prices in San Diego over the next 12 months (and each year for the next three years). It's too bad they couldn't find a more recent picture of the Downtown San Diego waterfront (the picture they used for San Diego, unless they changed it after I posted this article, is missing at least two newer condo complexes... so I uploaded my own updated picture into this article...)! San Diego was ranked #5 on the list (behind only San Jose, CA; Santa Ana, CA; Bethesda, MD; and Pittsburg, PA). The study credits a positive outlook for job growth and a rebounding economy as reasons why San Diego made the Top 5.
In my opinion, 2% is a pretty safe (and boring) prediction. I don't mean "safe" as in the market is definitely going to improve this year (it may not), but safe in the fact that 2% is a low number. If they were saying that prices would increase 10%, now that would be a story! That's just not happening, though.The truth is (in my opinion) that San Diego will probably be bumping along at prices very similar to what we have right now for the next several years (due to several factors affecting supply and demand such as loan options, unemployment rate, foreclosures, etc.). If you're planning to buy a home in San Diego, one thing to consider is that different price ranges, home sizes, ages, and neighborhoods have different supply and demand. Some parts of San Diego will go up in value this year, while other areas go down!
To really understand your marketplace, you need to dive in and look at statistics and trends on a hyper-local level. This is something we look at with all new clients during our Buyer Strategy Session. It's important as a buyer to understand the marketplace that you are purchasing in, so that you can form the proper expectations for your home search and prepare a smart negotiating plan to get you the right home at the right price.
For those who already own here, though, it's nice to hear that home values may be increasing (or at least keeping up with the pace of inflation).
Justin Gramm is the founder and principal broker of Globella Buyers Realty, your San Diego Exclusive Buyer Brokerage. He also writes this blog, "For San Diego Home Buyers."
Exclusive Buyer Agents do not list homes for sale and never represent sellers. They have no "inventory" to try to sell you. They can represent you in purchasing any home. They are specialists at representing buyers only on the buyers' side of the transaction. Exclusive Buyer Agents work to get buyers the best price and terms when they buy a home.
If you have excellent credit and plan to buy a home or condo in San Diego County within 90 days, contact Justin Gramm to hire an agent on your side of the transaction. Call Justin at (858) 437-2662 or E-mail.