High rents in San Diego are a good reason to buy a home
Though renting has nothing to do with the act of purchasing a home, the statistics surrounding leases and other aspects of monthly payments can provide insight into the current housing market. For example, homes for sale in San Diego are currently renting out for higher-than-usual prices, but this undermines the state of the overall housing market present in the city, which is experiencing a slow recovery as the national economy continues to improve.
This is not necessarily apparent to every expert in the industry, as some say that the increase in rent is detracting from the housing inventory and driving down the price of listings.
"There's definitely a propensity to rent that we didn't have in the past. With so many foreclosures a lot of families have moved from home ownership back into renter-ship," said senior research associate Tracey Seslin, according to KPBS.
However, Seslin is overlooking the fact that the number of foreclosures in February of 2012 fell by 13 percent from the month before, and are currently hovering at a low that has not been seen in four years, according to the news source.
Additional data provides additional reasons to remain optimistic about purchasing one of the houses for sale in San Diego. The average listing for a property in February of 2012 was $362,470, which was an increase of nearly $12,000 from the month before, according to SDGLN. The unsold housing inventory and average time-on-market for houses in San Diego were also at all-time lows during the first quarter of 2012.
So, despite the fact that traditional real estate doctrine dictates that people should remain cautious about purchasing homes in Southern California, hard numbers point to the exact opposite strategy. The current situation is great for both sellers and buyers, due to bidding wars occurring on a level not seen since before the recession in 2007.
For sellers, the decreasing amount of distressed sales is resulting in a generally higher value for property appraisals, allowing them to list their residences at increased prices. In the best scenario, they might even be able to secure an asking price well above the intended selling point. For buyers, lender confidence will allow for the securing of lower mortgage rates, and the possibility of fixing up a house to sell in the future for even more profit. Ideally, the San Diego market is for people buying a second home or looking to relocate from elsewhere.