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San Diego Ranked 6th Hottest Housing Market, 10th In Rising Rents

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Real Estate Agent with Keller Williams Realty 01458113

 

According to the latest housing report from realtor.com, San Diego ranked the 6th hottest housing market in the nation, followed by Sacramento (No. 7), San Francisco captured the No. 1 spot. Realtor.com said it reviewed listing views by market as an indicator of demand and median days on market as an indicator of supply, which led to the identification of the 20 hottest medium-size to large markets in the country.

 

In October, the Months Supply of Inventory (The inventory of homes for sale at the end of a given month, divided by the average monthly pending sales from the last 12 months) decreased 27.8 percent for Detached homes and 36.7 percent for Attached homes. It is the lowest supply since May 2013.

 

According to an analysis of rental prices of single family homes by real estate data provider RentRange, San Diego ranked the 10th place where rent is growing the fastest. Rents in San Diego increased 13.6% between the third quarter of 2014 and the third quarter of 2015.

 

 

Population growth is a significant factor in the rising demand. The county’s population grew by an average of nearly 33,000 people annually over the past two years, according to the San Diego Association of Governments estimates. Some of this is natural growth — more births than deaths — while some of it is probably also driven by new employment opportunities that have attracted new residents from out of town.

 

Are rents rising so high that home buying becomes a viable option for you?

Buying a home may be a viable option for several reasons. Living in San Diego you expect the expense to be somewhat high, but situation is not going to get better for renters. Mortgage rates are low. New low down payment loan programs recently introduced by Fannie Mae and Freddie Mac, along with the lower insurance premiums for FHA loans that took effect at the end of January. Some banks now has 100% financing mortgage programs. Home buyers can take advantage of these opportunities and should invest in your future. However, you must be careful to look beyond monthly mortgages to the addition of property taxes, maintenance, water, trash and other recurring costs to fully assess whether a home purchase is affordable for you. Although owning a home is still a great American dream and the tax deduction and opportunity to build equity are additional incentives.

Photo courtesy of San Diego Union TribunePhotos courtesy of San Diego Union Tribune

 

 

I am here to help make your home buying process run as smoothly as possible. Take advantage of my expertise to make your Home Buying process easier, call 619-663-7139, or visit my website "Keller Williams San Diego - The My Home Team.

 

 

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