2016 San Diego Real Estate
2016 San Diego real estate forecast. I’d like to say that I’ve been in the residential real estate business for over three decades! But, I am certainly not an economic forecaster or financial advisor. What I am, is a California real estate broker. So, my forecast here is obviously my best guess of what might transpire in San Diego real estate 2016.
Many factors affect the economy as well as the residential San Diego real estate market. So, just use this opinion as just that, one broker’s opinion. Before making a decision whether to buy or sell San Diego real estate one should consult with their own accounting and/or financial real estate advisers.
I’m not going to go over the points that I made in my forecast in this video. What I am going to say is that I feel that in today’s climate it is extremely risky to use San Diego residential real estate as a speculation to enhance your financial portfolio.
As far as purchasing real estate to build up your rental portfolio, I would leave this concept to the professionals. One must understand that when owning residential income property this is a business that requires your utmost attention to not only ensure you are complying with all the legal requirements a landlord is responsible for, but also that your property is properly maintained.
I always say, that if you’re a hands-on type of person and you buy a residential income property within a short distance of your main residence, you’ll be able to do a lot of the necessary repairs and maintenance that could save you thousands.
But, before getting involved in San Diego investment residential real estate, it just makes common sense to me that one should invest in their own principal place of residence first.
In many desirable areas within San Diego California rents have been going through the roof during the last few years. So, if you can qualify, purchasing San Diego real estate in 2016 as your principal residence may still make lots of sense, even if home appreciation is flat in 2016.
For licensing information: California department of real estate
My husband and I cannot wait to leave this state, it has become another failed, third-world state!
I live in a suburb 50 miles north of Los Angeles in California. I have lived in Southern California my entire 49 years. It used to be a friendly and opportunistic place to live. These days it is frightening to see how fast the quality of life is deteriorating in California. After paying for the bills, there is no money left to enjoy the beautiful places California has to offer: the beaches, the mountains, the desert; it is all here. The crime is out of control. Drugs and child abuse is so common place you see it on the streets, in the stores, in front of your house. Supporting undocumented residents is a huge burden on the state. Now, I realize you cant escape crime, drugs,taxes, etc., but it is a struggle for the average middle class citizen to live here. It seems like only those on welfare or are substantually wealthy have a chance here. I plan to relocate within one year.
San Diego real estate . . . Rent here is excruciating – figure $1200-$1700 for a one-bedroom apartment, and don’t believe the rents you see on Craigslist. Plan on your days off as less than serene. Most apartment/house/condo windows are all single pane (no winter and also no noise blocking), and most adjoining walls/floors are paper-thin. People come here to party in the summer.
All the old Baby Boomers are going to start racing each other to cash out their homes before others unload and drag down the market. They have nothing left in savings due to inflation, they didn’t save enough, they live longer than expected, it’s messed up that they on average could have their first child at age 21 when today’s millennials start their family at 26. They had one breadwinner and the woman stayed at home and they had a lot in their savings. Compared that to how you have young people today working two jobs and still can’t afford rent much less a house. Home prices are overvalued and it needs to come down hard so young people can enter the market and stimulate the economy by buying all the things that go inside the house and build their wealth. The Baby Boomers that wake up too late will sell their house at the bottom and get very little for their transition to a nursing home.
Sorta seems like the next bust will force many into a renting situation permanently. Over time, people will appreciate the ability to travel freely without being housebound with a mortgage. I’m sure rent prices will eventually fizzle and become reasonable after the next renting boom.
Expensive neighborhoods are probably in a bigger bubble. Just look at San Francisco, NYC and LA.
Hello Bob – I watched this video its interesting. I live in southern California and I bout in 2011, I currently have my house on the market because my family has out grown the house. It will sell for a healthy gain in equity. I am trying to figure out wether to buy into another home or rent? I am concerned that if I buy into another home that I will be buying towards the top of the market. Do you think I should buy back into the market and see the several 100% gains, or rent and wait for prices to fall again?
Thanks
Buying real estate now for appreciation is a fools errand IMO. I have done the opposite and sold the properties I had. What I see as a bigger fall in real estate than in 2008. Hopefully I am wrong but this is the shakiest fundamentals I have seen in my 14 years of real estate investing.
In regions where inventory is tight, such as the San Francisco Bay Area, sales growth could be limited by stiff market competition and diminishing housing affordability” … this does not make a lot of sense,. If inventory is tight, how would you expect MORE competition ? (except from a buyers perspective, which creates a sellers market and higher sales prices.). And, diminished affordability would assume that high paying incomes are going down, or interest rates substantially up? It seems more likely that the tight inventory will raise prices and the “lower affordability” will even out the qualified buyers out with the tight inventory.