Because of the effects of the Great Recession, it is known that San Diego real estate has accepted the fact that there is a bubble encasing market. According to a story in KPBS San Diego, to weather the storm of this recession from the prior five years, customers have looked to real estate. However, it has been difficult to find a finite trend in the industry.
According to Dataquick, the value of homes are in better shape than ti has been in previous years. From November’s numbers, the median sales price for San Diego real estate was 20-percent higher than it was in November 2012. Last month’s median price was at $415,000.
In a report released on December 17th from the Public Policy Institute of California, is that the foreclosure rate in California has dropped 60 percent from last year at the same period of time.
According to that foresaid report, January 2013 indicated the first time that California didn’t hold the highest amount of foreclosures in the country since January 2007. In that following month, California’s foreclosure rate didn’t rank in the top 10, which was the first occasion since December 2006.
The predictions have been difficult for San Diego Realtors to figure out, because technically the full recovery of the housing market hasn’t occurred yet.
However, alongside of the housing market woes, the job market is beginning to improve. Even though interest rates are at record lows – the increase in jobs will continue to bolster customer confidence in purchasing homes.
“If you want t the economy to recover, you start making it easier for builders to build homes,” Alan Nevin said to KPBS. Nevin is a real estate economist with the Xpera Group.
“When we had a boom, we had 90,000 construction jobs. Now we’re down to 50,000. That was an enormous revenue stream to the county.”
Nevin also feels that San Diego County is not even close to having construction of 10,000 new housing units on a year-to-year basis. According to Nevin, if this were to be the case, this would be the true indicator that the recession is fully dispersed.
A strong new San Diego real estate and new home construction market will have a healthy effect on the economy of the regions. According to the calculations of Nevin, he says that every $1.00 spent on new home construction, $2.00 will return to the region’s economy.