On the Money

San Diego’s housing market rebounds

SAN DIEGO – The S&P Case-Shiller Home Price Index recently reported that home prices in San Diego have risen for nine straight months.

Joe Bertocchini of the University of San Diego’s Burnham-Moores Center for Real Estate said when it comes to homes, San Diego’s market is lacking supply.

neighborhood-for-sale“As soon as they come up and they’re available, they’re gone,” said Bertocchini. “We just don’t have enough land out there right now in San Diego to be putting enough new product out on the market.”

Bertocchini said for what product there is the product doesn’t last. When a foreclosed home is released by the bank, investors are hungry to land them.

“The investor pool is really chasing deals in San Diego right now,” said Bertocchini. “It’s creating a really difficult situation for homebuyers who are trying to get into the market.”

It took Zachary Love more than a year to buy a home in San Diego.

“I probably put 20 offers in over that time,” said Love.  “Every offer seemed to come in over list price – multiple offers.  They’re getting boosted up really fast.”

The good news is it means San Diego’s real estate market is recovering.

“Boom is a dangerous word to use,” said Bertocchini.  “I think as far as we can tell it’s going to continue to grow you’re going to see strength in the market.”

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8 Comments to “San Diego’s housing market rebounds”

    restorationjobs said:
    February 20, 2013 at 12:41 PM

    Great news :)

    Just wondering said:
    March 4, 2013 at 10:41 AM

    My parents live in Chula Vista and they are not seeing the same demand. Do you know the outlook for that area?

    Michael said:
    March 20, 2013 at 12:40 PM

    God I hope it busts again! House prices have SHOT up and prices are getting unreasonable again. Sellers market with investors inflating prices. Awesome!

    Trial by Fire said:
    March 28, 2013 at 10:11 PM

    Well, Just Wondering….I've been searching in Chula Vista, San Marcos and Escondido and BELIEVE me, the demand is intense! I've been in homes (in Chula Vista) where we had to wait downstairs for the people upstairs to vacate before we could go up. Everywhere, people are bidding up 20,000 + and losing out to cash investors, who will flip the home in 3 months and sell it at a premium. Homeowners with cash on hand are also jumping in to catch what real estate they can as prices climb northward.

    Buyer's agents are working hard for their money, but only if seller's agents really give them a chance. My guess, in this low inventory feeding frenzy, is that seller's agents are less motivated to share commission with buyer's agents, but subtly pushing their showings ahead of the buyer's.

    We finally got a really nice house…in Temecula where things there are just starting to heat up. The commutes won't be fun, but at least we had a semblance of control. Hang in there all of you!

    Cheri Weiss said:
    March 29, 2013 at 11:08 AM

    I had 31 offers on a condo I put on the market in Carmel Valley several months ago, at least half were cash offers, mainly investors (non-owner occupied). All of our listings have had multiple offers on them for at least the last 6-8 months, and our buyers have to outbid other buyers when we put offers in for them (so far so good!) I believe we still have a post-Depression mentality, which is causing sellers to be reluctant about putting their homes on the market and moving up the housing food chain even if their personal financial situation has improved or stabilized. This lack of inventory is causing a feeding frenzy. Buyers that previously held off on purchasing a home were waiting for the market to hit bottom then panicked when it did, fearful that they would miss out. We are still seeing many short sales; I believe that will be the situation for at least another year. Cheri Weiss, Broker/Owner Top Coast Properties

    Waterson said:
    April 4, 2013 at 12:03 PM

    Fantastic blog post. It's correct that investor pool is really chasing deals in San Diego right now. Thanks for sharing.I really realise it that you circulated with us such informative post,great tips and very very easy to realize.

    1st time home buyer said:
    April 8, 2013 at 9:34 PM

    We have been searching for a home for a long time now, in north county and even Temecula and Murrieta, every time we have put an offer in we get beat out by cash offers/investors, its been so discouraging. However we got really lucky with a nice short sale in an amazing area in north Escondido, we only ere able to put an offer in because the previous buyer messed up and the house was listed through our realtors company, we put the bid in back in January, within two weeks found out our offer was accepted but then found out there were two loans, then the second loan got sold, last week heard they accepted our offer and will be signing the papers this week! it was so worth the wait, we would have never been able to afford a home in this gated community if it was not for this short sale, but now we are considering fixing it up a bit and selling it to make a good profit…its a tough decision.

    Guest said:
    April 9, 2013 at 10:05 AM

    Gooooooooo Investors!! Fingers crossed that we have not learned our lesson and we have bubble 2.0. Let the good times roll!

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