San Diego investment firm: Constraints make this the best time to buy in 100 years
With reported concern over the low inventory of available homes for sale in San Diego, there are some who see this as a positive influence on the housing market recovery and the overall economic state. A recent article in The Daily Transcript stated that the low inventory is helping to create a positive outlook for the San Diego market by pushing prices up.
Related to the supply and demand nature of the real estate business, as home values continue to climb, sellers are more likely to put properties on the market, Donna Sanfilippo, a local housing market expert, explained to the source.
"Because now they're catching up, they're gaining a little equity and people are ready now to maybe make that initial move into either moving up or down, which we see a lot of transitioning from single family homes into condominiums," Sanfilippo said. "There is pull in both directions."
A recent release from San Diego-based investment firm Blue Sky Capital detailed that while many people might feel that all the developments in the last few years have made real estate a market to stay away from, the opposite is true at the moment.
The source revealed that due to deals with the government regarding how banks are to post their non-performing assets, there is no pressure from the federal government to clear out banks' backlogs of foreclosures. Blue Sky Capital reported that while housing prices are increasing, this is due in part to banks that are holding onto properties that would normally go through the foreclosure process.
Chris Williams, CEO of Blue Sky Capital, stated, "As a result banks are starting record numbers of foreclosures, but not taking them through to the final step." This has led some to speculate that the increase in home prices that is currently being observed is not a sustainable recovery.
Williams concluded, "Because of today's market conditions, and especially because of the artificial housing constraints, now is the best time to invest in real estate."
The Union-Tribune article reported that San Diego County Treasurer-Tax Collector Dan McAllister told industry professionals that a positive of the foreclosure situation is that area banks quickly rushed to pay taxes to avoid a tax blemish. Tax blemishes could potentially serve as a black mark on the property profile that would be disclosed to the public and could result in devaluation of certain properties.