Welcome to San Diego Blog | January 27, 2013
2013 Economic Forecast
I recently attended a presentation by Marketpointe Realty Advisors and The London Group and it was quite interesting to get their take on the San Diego economy and how the housing market will be affected in 2013. These were the most interesting take aways from the presentation.
In San Diego County:
- Population will continue to grow at 25,000 plus in 2013
- New Jobs will surpass 20,000
- New Home Sales will marginally improve with only 2500-3000 homes delivered across the county. This includes condos and SFR and is about 30 of what we would normally see.
- Few new lots for tracts will be subdivided
- The resale housing market should be similar to 2012 with 35,000 plus homes and condos being sold.
- Short Sales and Foreclosures will diminish substantially.
- Mortgage Interest rates will continue to remain low
- Home prices countywide will continue to increase 8-10% as they did in 2012.
Downtown San Diego Real Estate
With the limited inventory we are seeing and the lack of new properties coming on the market along with the strong demand for Condos in Downtown San Diego, 2013 is going to stack up to be a great year. Downtown San Diego Condo owners shall be delighted to see gains similar to that of last year around 15% or so. Wow, fifteen percent, how can that be so you might ask?
Here are a few more fun facts that point the numbers in that direction.
San Diego Demographic Info
- 66% of all households in San Diego had no one living at home under the age of 18 years. Why then do you need the 3000 sq/ft plus house? Why not shift to a more simple lifestyle like the downtown lifestyle?
- 25% of all households are occupied by only one person. Wouldn’t it be easier to live alone downtown than out in the burbs? More fun, more friends and less work!
- Only 1 in 7 households ha a mom, dad and two kids at home. Wouldn’ t that mean that families with the exception of 14% of the population, downtown living would be a possibility? Even families with just one child could easily stay in downtown.
It is estimated that 40-45% of the condos in Downtown San Diego are investor owned today from savvy investors that bought at the bottom of the market. We expect to see a good number of those investors start to get out as they can already get substantial returns while the housing market is hot. There will still be great deals in 2013, but not those of 2011 when we had a ton of inventory and fearful buyers.
It’s a great time to purchase a piece of America’s Finest City. Give us a call if you would like to see what San Diego real estate can do for you. 619-309-8011.