San Diego Landlords Rejoice

By
Managing Real Estate Broker with San Diego Previews Real Estate CA BRE# 01101958

 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.

 

For San Diego Real Estate, visit:

http://www.SanDiegoPreviews.com

 

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Rainmaker
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Gena Riede
Riede Real Estate, Lic. 01310792 - Sacramento, CA
Real Estate Broker - Sacramento CA Real Estate (916) 417-2699
Roberta, Good post. Gives me an incentive to blog on my own about this. If you don't mind I would like to mention you in my blog as the voice of San Diego. Very informative and good use of links. 
Dec 12, 2006 02:06 PM #1
Rainmaker
311,264
Brian Brady
San Diego VA Home Loans/858-777-9751 - San Diego, CA
858-777-9751

Now, we may start to see the diparity shift.  It is so much cheaper to rent than own in San Diego.  I still worry about the median wages keeping the rental figures in check.

If this trend, combined with lower mortgage rates continues, we are in for some firming up of housing prices in San Diego. 

Dec 12, 2006 03:12 PM #2
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Rainmaker
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Roberta Murphy

Carlsbad Real Estate and Homes
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