California’s HOT Real Estate Market
Data from the California Association of realtors shows that the average residential detached home sales price it $605,000 in December 2017! in January 2018, the average residential detached home in San Diego selling price was actually a little lower and came in at $590,000!
Now, $590,000 for the average detached home in San Diego is a hell of a lot of money! But, for comparison purposes, out of the six Southern California areas ( Los Angeles, Orange,Riverside, San Bernardino, San Diego, and Ventura) in this report, San Diego actually came in and third-place. of the six Southern California areas in the report the average residential sales price for a detached home was the highest in Orange County, at a staggering $780,000! in second place, was Ventura at $660,720. the lowest priced average home sale for the six areas studied in Southern California was San Bernardino, which came in at $277,000.
California’s HOT Real Estate Market
What I found interesting in this report was that of the six areas in Southern California in this report the average detached residential sales price had actually gone down from December 2017 two January 2018. personally, I believe this is due to the fact that interest rates/home mortgage rates have been increasing as the economy has been improving. Unfortunately, here in Southern California even slight interest rate increases (because of our extremely high home prices) has a dramatic effect on qualifying for a new home mortgage.
Historically San Diego’s residential resale home sales market activity below normal because of the lack of resale housing inventory. so, it looks like the main question to be answered by the latest slight decline in the average home sales price is whether this is a start of a moderating cycle in housing appreciation that could result in a normalization of real estate resale inventory.
Naturally, just being a residential California real estate broker I can’t really know with any certainty how all this will play out. So, I have to stick with just reporting the facts and my readers can draw their own conclusions. I’m sure if there were 10 economist asked where they thought the average San Diego residential detached home sales price would be a year from now, you’d get 10 substantially differing opinions.
With that said, let’s go back to the question that I hear so often . . . Is now a good time to buy a San Diego home? I would say, that if you asked 10 different San Diego Realtors this question, probably nine out of 10 would say it’s a great time to buy. You should keep in mind, that really no one can accurately predict the future of any market . . . Especially the Southern California housing market! Also, Let’s face facts the real estate industry is geared toward sales! so the vast majority of its participants are conditioned to answer a question like this, always in the affirmative.
So how can you actually get an answer to this question that will prove accurate when looking back in a year or two? In my opinion, you really can’t get an accurate answer to a question like this. So what should you do if you’re considering buying a home here in Southern California? I would say get together with your financial advisor, your lawyer and/or CPA and instead of asking them what they think of the market, asked them based on your individual financial circumstances if buying the home makes economic sense for you.
Visit the CAR site fror more information on the California Housing Market
California’s HOT Real Estate Market
It’s crazy here in California that I was approved for a 375k loan but there was nothing good to buy. JUST OLD CRAPPIE HOUSES IN THE GHETTO. I’m moving to another state in because it’s rediculus out here!
Here’s the problem in California. The liberals with the money love to talk about fuzzy things like building affordable housing, but then when it’s suggested that an affordable housing unit be built within 2 miles of their home it’s all “Ew, no! It’ll drive down the price of my own home!”
It is true that if a city is expensive, then the wages will be higher. But at what cost? It is just a rat race. Wages will not be able to keep up with the cost of living. The best solution is to save a ton of money living in expensive city while sacrificing and trying to reduce expenses as much as possible. Then take your savings and pay all your debts and move to a small town with the remaining funds. Live a simple, minimalist, debt free life. Even though a job won’t pay much there, it can at least cover the necessities and a little more for spending and enjoying.
This is no surprise, every major city that’s is worth living in is expensive because of the demand for housing. Whether it’s San Diego, LA, NYC, Miami, San Francisco, Boston, etc. If cheap housing is important, than choose a city with cheap housing. I wouldn’t want to live in one of those cities but I’m sure it works for some.