San Diego's known as one of the most upmarket and expensive places to live with gorgeous homes selling for over $20 million each.
Times are a-changing though, with recent events resulting in unforeseen trends for real estate markets across the country. What does this mean for real estate in San Diego though?
See for yourself with this snapshot of San Diego real estate trends to watch in 2020.
Mortgage Rates Are Fluctuating
A few weeks ago, San Diego's mortgages rates were among the lowest ever recorded. Yet, these figures remain in flux as the world responds to the uncertainties of the times.
Lower rates mean people can afford to spend more on homes but the constantly changing figures mean navigating interest rates is down to a fine art right now.
When interest rates are low, prospective buyers can buy a better home for a price that's lower than they would have paid last year. This means higher-priced houses sell faster than they normally would.
What happens when the rate goes up again, and then down again? These uncertainties are offputting for less courageous buyers.
Those with the means to take a chance could benefit from the situation lasting long enough for them to experience significant savings over the long-term.
There Are Fewer Homes for Sale
COVID19, restrictions on movement, and high levels of unemployment mean banks are granting relief to homeowners this year.
Many of these institutions are allowing people to tack their missed payments onto the end of their loan periods. That means economic factors won't force homeowners to sell their properties as readily.
Many of them are sitting tight and waiting for better times before putting their homes on the market.
Not only will they receive better prices in more prosperous times, but few want to add yet another uncertainty to their lives at this point.
Thanks to this San Diego looks set to remain a seller's market for some time.
Multiple Offers Are Common
Real estate forecasters predict that San Diego's strong economy should weather these uncertain times, which is promising news for home sellers too.
While some buyers have withdrawn their offers due to ongoing uncertainty, there are still more committed buyers than sellers in San Diego County.
That means, sellers in sought-after areas like Spring Valley, often receive multiple offers on their properties. It's not unusual for up to nine buyers to bid on one home, many of them cash buyers.
Most high-end properties in San Diego sell for around 1% above list price, about 6 days after they're placed on the market.
In less popular areas, homes typically take 17 days to sell at around 1% below list price.
Prices Should Hold Firm
Property experts expect the average price of homes to increase this year. It's likely to be at a slightly reduced rate when compared to the boom of previous years.
In May, the overall sales-to-list price ratio was 99.4%, so sellers and buyers are pretty much on the same page when it comes to prices.
Forecasters remain confident that San Diego's real estate market will pick up in no time once economic activity's back in full swing.
If things are slow to get started again, demand for houses in San Diego could decrease to the benefit of prospective buyers. It won't last long though.
For prospective homebuyers looking to find a great deal on houses in San Diego, timing is everything right now.
A Longer 'Buying Season' is Possible
Traditionally, summer's the busiest season for house sales in San Diego. As a result, prices are at their highest, and inventory's low at this time of year.
This year, children won't go back to school in the fall. This extended 'summer vacation' could mean the buying season lasts well beyond the norm.
This could mean the traditional summer balancing act between inventory and price will continue well into winter.
On a positive note, this could prompt some homeowners who are on the fence about selling to put their homes on the market.
The Election Effect
The double whammy of an upcoming presidential election plus a worldwide pandemic could affect the property market too.
Usually, in an election year, homeowners delay selling until they know the outcome. With the double uncertainty this year, we could see this phenomenon last even longer.
Best Places to Buy Real Estate in San Diego in 2020
Across the board, San Diego real estate offers a great return on investment, with property prices increasing by as much as 5% in a year.
Condos and townhomes are the most profitable rental properties. These are the most lucrative areas to buy a home in San Diego:
Point Loma features stunning scenery and gorgeous bay views. It's a quiet neighborhood with various home styles to choose from.
Prices in this area are on the high end and there's a great demand for these exquisite properties.
Pacific Beach is an excellent choice if you'd like an investment property with great short-term rental potential.
This area's a hit with vacationers looking for entertainment, restaurants, and shopping. It an expensive area, but could reap huge returns from a rental perspective.
Carmel Mountain Ranch
If you're looking for somewhere to live, you can't go wrong with Carmel Mountain Ranch. It's a safe upmarket neighborhood where everything's within easy reach.
You'll find excellent schools nearby as well as easy access to the city for work purposes.
Rancho Bernardo's another top choice for families, offering highly-rated schools and a dense suburban vibe.
It's a master-planned community featuring abundant parks, shopping centers, and coffee shops as well as a golf course.
You'll find abundant opportunities for employment here too, with several major corporations headquartered in this area.
Are You Interested in San Diego Real Estate?
Uncertainty and volatility are the norms across the real estate industry at the moment.
Are you willing to take advantage of any possible benefits this could mean for you as a seller or buyer? Your best bet is to secure expert help negotiating these turbulent waters.
Get in touch for expert advice on all your San Diego real estate needs.