Update for the month of January coming into February 2023.
The San Diego real estate market has been attracting a lot of attention in recent years, with many people looking to invest in this thriving city.
In this article, we will provide a comprehensive analysis of the San Diego real estate market, including current trends, economic factors, and investment opportunities.
Goldman Sachs Weighing In
Are You Ready for a Housing Market Shift? Goldman Sachs Predicts Significant Decreases in San Diego’s Home Prices
It’s no secret that the housing market has been on fire in recent years, with home prices reaching new heights in many cities across the country. But, as the old adage goes, what goes up must come down, and Goldman Sachs is predicting a significant decrease in San Diego’s home prices that could rival the 2008 crash.
In my professional opinion, this change was bound to happen eventually as nothing goes up forever. The once-scorching hot housing market is expected to cool down and continue to do so throughout 2023.
Goldman Sachs has even predicted that cities such as San Diego, San Jose, Austin, Texas, and Phoenix, Arizona will see declines of more than 25%. Battiata attributes this shift to the increased demand these cities saw during the COVID-19 pandemic.
However, not everyone agrees with this forecast. Frank Powell, the president of the San Diego Association of Realtors, has a different perspective. He believes that the economic indicators just aren’t there to support a crash similar to 2008 and thinks that home prices will come down, but the market will stabilize, rather than experience a crash. Powell cites the low housing inventory and high demand in San Diego as reasons why home values will not crash.
So, what does this all mean for those in the market for a new home?
It’s always a good idea to stay informed about the housing market, but ultimately, it’s about finding the right home for you and your family. Whether the market is hot or not, a home is still a place to make memories and create a life. If you’re in the market for a new home, take your time, do your research, and trust your instincts. The housing market may be shifting, but that doesn’t mean your dream home is out of reach.
Current Trends in the San Diego Real Estate Market
The San Diego real estate market is currently experiencing steady growth, with an increase in both property values and the number of homes sold. According to the San Diego Association of Realtors, the median home value in San Diego is $750,000, which is a decrease of 11.76% from the December 2022 median home price.
Detached Homes Trends
The Median Sales Price was up 2.3 percent to $869,900 for Detached homes but decreased 0.8 percent to $585,000 for Attached homes.
Closed Sales decreased 46.2 percent for Detached homes and 53.9 percent for Attached homes.
Pending Sales decreased 30.0 percent for Detached homes and 35.9 percent for Attached homes.
Inventory increased 48.6 percent for Detached homes and 63.9 percent for Attached homes.
Days on Market increased 60.9 percent for Detached homes and 95.2 percent for Attached homes.
Supply increased 116.7 percent for Detached homes and 120.0 percent for Attached homes.
- The median price of a one-bedroom house in San Diego County is $472K. If you put 20% down, the monthly payment = $2,899.
- The median price of a two-bedroom house is $675K. If you put 20% down, the monthly payment = $4,141.
- The median price of a three-bedroom house is $800K. If you put 20% down, the monthly payment = $4,908.
- The median price of a four-bedroom house is $1.27M. If you put 20% down, the monthly payment = $7,822.
- Two-bedroom apartment rents average $2,995 which is a 0% increase from last year.
- Three-bedroom apartment rents average $3,900 which is a 3% increase from last year.
- Four-bedroom apartment rents average $4,950 which is a 15% increase from last year.
Economic Factors Driving the San Diego Real Estate Market
The strong economy in San Diego is a major factor driving the growth of the real estate market. The city is home to numerous tech companies and startups, as well as several major corporations, which provide a stable job market and steady economic growth. Additionally, the city’s thriving tourist industry, with its beautiful beaches and attractions, also contributes to the local economy.
Investment Opportunities in the San Diego Real Estate Market
The San Diego real estate market offers numerous investment opportunities for both local and international investors. One of the most popular investment options is residential rental properties, as the city’s growing population and strong economy make it a prime location for renters. Additionally, the city’s tourist industry provides opportunities for short-term rental properties, such as vacation homes and apartments.
Another option for investors is commercial real estate, which can provide steady rental income and the potential for long-term appreciation. San Diego’s thriving economy and growing number of businesses make it an attractive location for commercial real estate investment.
The San Diego real estate market is a thriving market with many opportunities for investment. With its strong economy, growing population, and thriving tourist industry, San Diego is an attractive location for both local and international investors. Whether you are looking to invest in residential or commercial real estate, the San Diego real estate market offers numerous opportunities for growth and success.