Prospects in the San Diego housing market
People looking for homes for sale in San Diego may be interested to hear the results of the most recent "Emerging Trends" annual report. The report was issued at the annual Urban Land Institute convention in Denver in mid-October, reported North County Times. Accounting firm PricewaterhouseCoopers worked in conjunction with the Urban Land Institute and surveyed more than 900 industry practitioners to establish their findings. Out of the 51 major U.S. markets analyzed, San Diego ranked 15th for its real estate prospects.
The Times reported that the "Emerging Trends" survey placed San Diego in "the green 'good' zone." On a scale of one to eight, with one being bad and eight being good, the San Diego real estate market received a value of 6.37 for investment prospects. This number is up from 6.17 last year. Looking at development prospects on the same point scale, the San Diego real estate market received a value of 5.18, which is up from last year's 5.6. Homebuilding prospects also increased, receiving a value of 5.61 and up from last year's 4.64 on the same point scale.
"Even though San Diego is not an overly diverse city in terms of employment, more than 40,000 jobs have been filled since the peak," the Emerging Trends report states, according to North County Times. "Also the city's tourist traffic continues to improve, increasing revenue for the area. With these and other attributes, investment prospects moved up three positions."
A 'less anemic' San Diego?
A recent article in KPBS by news hosts Maureen Cavanaugh and Pat Finn cited industry forecasts that describe San Diego real estate as "looking less anemic." The forecast revealed that home values in San Diego County increased by 2.3 percent in the third quarter of 2012, which ended on September 30.
KPBS additionally cited DataQuick numbers, which revealed that foreclosure activity and notices of default reached a five-year low in the third quarter of 2012 throughout the state of California. San Diego in particular is seeing a rise in short sales.
"Short sales have increased in San Diego and statewide, and have overtaken foreclosure as the favored process to deal with distressed homeowners," reported Cavanaugh and Finn. "In a short sale, homeowners and banks agree on a sale price that falls short of the amount owned on the mortgage."