It seems like a typical story here in San Diego- home prices were up again. They were up 0.3 percent in August from July. This according to the article posted in the San Diego Union Tribune. With home prices continually rising across the county its a wonder if we can expect the trend to continue or will soon reach an end.
IPA’s own Bob Macguire says, “With the protracted process of entitling land securing permits to build, home prices will continue to go up. This is a big problem in our County and City and both municipalities need to think about streamlining this process. It take’s so long for developers to entitle land that you simply can’t fill current demand”. This creates upward price pressure in the market.
According to the state Department of Finance the population of the county of San Diego has grown 1.1 percent from January 2014 to January 2015. This is an increase of more than 35,000 people. the good news is there is probably still some room for rent growth and home prices should stabilize at our new highs post melt down to provide a healthy Real Estate Market. There are still concerns of what move the Fed makes to interest rates, however the general consensus in the Finance and Real Estate communities is that whatever the move is it will be slow and measured to not create to much upheaval in what is still a fragile economic environment. With San Diego’s weather, beauty and beaches it will always be a top tier California market, thus demand will always be strong for properties that are priced right.