The San Diego real estate market is firing on all cylinders, as is indicated by a recent “hot list” published on Realotr.com. More specifically, however, San Diego real estate made the top 10 list of cities where homes were selling the fastest. At number nine on the list, homes in San Diego are moving off the market at an incredible pace, and there’s nothing to suggest the trend won’t continue for the immediate future. There is simply too much demand in the Southern California City to think otherwise.
There is, however, one significant concern: inventory levels, or lack thereof. For all intents and purposes, San Diego’s real estate market is perfectly healthy, but there are not currently enough homes on the market to meet demand. As a result, the city has seen historically high prices continue to march upwards.
San Diego is on a hot streak, which begs the question: What’s it all mean for San Diego real estate investors? What does all of this San Diego real estate news mean for people that want to start investing in the area? Perhaps even more importantly, should you invest in San Diego real estate?
Median Home Price San Diego
The median home price in San Diego has trended upwards for the better part of six years, as the recovery appears to have hit a greater stride than the city could have ever imagined. At this time of the year, exactly six years ago (March 2012), the median home value in the San Diego area was roughly $372,000, according to Zillow. Flash-forward to today, and you will notice that San Diego homes have nearly doubled in value. Appreciating as much as 10% in the last 12 months alone, homes in San Diego now boast a median value of $608,200, according to Zillow. If that wasn’t impressive enough, industry experts and pundits are convinced San Diego home values could increase an additional 5% in the coming year. That said, median home values in the city of San Diego could reach $665,000 by this time next year.