One of the most common questions I get as a real estate expert is, “How’s the market?” Here are some fun facts I heard from a recent talk by trusted local economist Alan Nevin.
The San Diego real estate market is fantastic. Here are some supporting facts:
The Gross Domestic Product (GDP) is doing fine. This is a combination of the rate of inflation and the total goods and services we produce in this country. Inflation is not going up right now.
This is our tenth year of upward growth in real estate prices.
The unemployment rate in California is around 4%, which is practically zero.
This year, there will be more than 5 million resales of properties.
This will be the best year of new home production in San Diego County since 2006.
The economy is great nationally, as it is with all internationally industrialized countries.
This year, California will hit a population of 40 million people. Canada currently has 37 million people, and Spain currently has 46 million.
Some statistics from the United Nations: The USA is the 6th largest nation in the world in GDP. This year, the US will pass France and become 5th in the world.
28% of the United States’ Millennials between the ages of 18-34 live in CA. Of these, 1/3 still live with their parents. In 1975, 57% of these folks were married; today, 27% are married. Now, they’re finally started to get married more and will be looking for housing.
CalTrans says 40,000 people per day commute from Riverside to San Diego.
There is barely any shovel-ready dirt anywhere near downtown San Diego.
Otay Ranch now has 35 new developments, and of these, there are currently only three homes available.
In 2017, there were approximately 900 resale condominiums downtown, and the average sale price went up around 5%. There are very few condos being built in/near downtown. There are around 3000 rental units currently available with the average 1-bedroom renting for $2600/month and the average 2-bedroom renting for $3300/month.
2018 is going to be an INCREDIBLE year for real estate values in San Diego, and the new Trump tax bill will have virtually no effect on the real estate market.