San Diego is a beautiful area to live, work and invest in, with its abundance of sunshine, the natural beauty of the Pacific coast and gorgeous beaches, it’s no wonder it is one of the most desired places to live in the U.S. The real estate market is booming for investors and sellers.
Investors and real estate brokers like Tham Merrill who has made over $100 million in sales in San Diego’s real estate market and Michael Citrin, a luxury real estate agent with Sotheby’s Reality, who himself has sold over 1050 homes can attest to just how robust the San Diego real estate market is. The two men are not alone in achieving an impressive increase in sales and profits from investing and selling in the San Diego real estate market.
According to a report that appeared in CNN’s Money Moves, San Diego is one of the strongest housing markets in the U.S. San Diego homes are selling are a fairly quick pace. Of the homes listed in February, 33% were still on the market 60 days later, this number is down from the previous year by 44%. This is good news for the real estate market because it means almost 70% of the homes/properties listed sold quickly.
Tips for San Diego Real Estate Investing
* When reselling don’t overplay your hand. Setting the property’s price 5 to 10% over the market will usually ensure you will get an offer closer to the property’s real value. If you set it considerably higher than the market value, chances are also higher the listing will fall flat and not sell. There is a bit of leeway though especially if the property has greater qualities or amenities than the area’s comps.
* Location, location, location! Before deciding to invest in a resale property make sure the location is desirable, although in San Diego there are not many areas that are not desirable. For residential real estate being located in close proximity to great schools, parks, major employers and business centers and grocery stores are great selling points. In fact according to research released from RealtyTrac, those homes within ZIP codes which have Trader Joe’s food stores appreciate on an average of 40% from when the home’s has been last purchased.
* Real estate is a reliable investment, especially in light the current low supply but high demand of property and homes in the area, so there is no reason to worry about playing what is referred to as the “bubble game.” What is the ‘bubble game”? Timing the next sale so it coincides with the possible pop or burst in the housing bubble by either selling soon to gain the peak profit or by swooping in with cash to pounce on the post-pop prices.
When the bubble popped 2007 through 2008 it was a financial disaster for some, but something that catastrophic is not likely to happen again. The supply and demand, combined with the elimination of the ‘easy credit or liar’s loans’ that were so prevalent just before the ‘crash’ in 2007-2008, reduces the chances of that type of crash happening again any time soon.