Every action creates a reaction, and the San Diego County real estate market is no exception. As home sales have cooled this past year, housing rents have risen 5.8 percent, according to the San Diego County Apartment Association. This hefty annual increase is the average rental income for all types of residential rentals in this area. That brings the average to $1237. per month. One and two-bedroom apartments are predominant in the market and have increased by an even loftier 6.2 percent, to an average of $1229.
We knew it was going to happen sooner or later. Too many former homeowners have moved into rental properties to wait out the market. They join other San Diego home buyers who are waiting for the real estate market to bottom. Combine those people with others who simply choose to be renters and/or have no other alternatives, and rental vacancy rates were bound to be affected. The San Diego region's vacancy rates have already decreased from 3.4 percent last spring, to a current 3.1 percent.
Speaking to the San Diego Union Tribune , Russ Valone with MarketPointe Realty Advisors warns that trying to time the real estate market can be a risky venure. "The problem a lot of those people are going to have is, by the time we all recognize the market has turned, it will probably be too late," he said.
Hmmm....perhaps those former homeowners who parked their equity dollars should consider buying a rental property while real estate prices are still soft. As I mentioned in an earlier blog here on Active Rain, real estate activity levels are picking up across the board. Statistics for this recent spike have not yet been reported.
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