2013 economic conditions look favorable in San Diego County
As the economy continues to recover across the United States, residents in San Diego can expect conditions to begin to return to normal. While this is not true in other areas of the country, the county is expected to attract thousands of new residents. The increased population will also have a positive effect on the housing market, with many anticipating that real estate in San Diego will return to its former glory.
According to The Daily Transcript, San Diego County will add approximately 25,000-30,000 persons as the birth rate begins to exceed the death rate. While this number remained constant during the recession with no newcomers joining the community, the improving conditions will likely cause a population growth as new residents relocate to San Diego County and existing families have more children.
Experts believe that 2013 will likely be a favorable economic year for San Diego County for a number of reasons. In addition to property and retail sales tax revenues gaining more than 7 percent in the coming year, new infrastructure projects, commercial projects and school improvements will improve conditions here.
The improving job market is another large factor at play in San Diego County, as many believe it will return to the vibrant state it enjoyed before the recession. According to the Transcript, 91 percent of the jobs created since January 2010 are in the private sector. Professional and business services, education and health services and leisure and hospitality dominate the landscape here, as residents work to maintain the thriving tourism and business markets that keep the city going.
As more people find jobs, they will be able to remove themselves from the “doubling” situation they entered during the recession. When money is tight, many people in San Diego and across the country moved in - or doubled up - with friends and relatives to save on housing costs. These household formations will likely shift in 2013 when people choose to “undouble” and seek their own housing arrangements.
To meet these demands, experts believe that approximately 4,000 units will be constructed in the suburbs and downtown districts during 2013. These units range from apartments to condominiums and single-family homes, and will function to meet the housing needs of the growing population. As more units are built, prospective buyers help improve the local economy by buying these properties.
The improvement comes at an ideal time, as projections show that the median price per square foot of a home is expected to increase in America’s larger cities. According to MarketWatch, San Diego was one of the best cities to sell a home in November 2012. As housing inventory continues to revitalize itself throughout the country in the slowest time of year for real estate, experts believe this indicates that the housing market will continue to generate growth. The median price per square foot was $169 in November, which marks a 9.7 percent increase over 2011’s numbers.
Realtor.com explained that the price of a median existing single-family home rose in 120 of the 149 metropolitan statistical areas across the country. In the third quarter of 2012, the average price per square foot in San Diego increased 4.5 percent over the same time a year before. The median home price in the area is now $383,300. Projections show that home prices will increase more in certain cities, but anticipate a 2 to 3 percent change across the country. At 4.5 percent, the San Diego housing market mirrors the county’s improving economic conditions.