Whether you are looking for a home to buy in San Diego or you are selling, you are almost certainly acutely aware of the housing crisis which has swept the West Coast. This is not a buyer’s market; with a shortage of housing units available, many continue to struggle to find affordable rents and mortgages.
While that imposes a challenge on buyers, it is good news for sellers, who now have buyers competing for their properties. Indeed, the high demand and low supply are continuing to drive up prices. According to the latest S&P CoreLogic Case-Shiller Indices report, housing prices between March 2017 and March 2018 in San Diego climbed 7.7%.
The Trend on the West Coast
While buyers might balk at the increase, San Diego has held steadier than most other major cities on the West Coast. In Los Angeles, the increase was 8.1%, San Francisco, it was 11.3% and in Seattle, it was 13%. Nor is this trend confined strictly to the West Coast. Across the country, the average increase in home prices year-over-year was 6.5%.
While the shortage of housing across the country is contributing to an increasing crisis, there are some upsides. For one, unemployment rates in San Diego are hovering around a two-decade low. Seasonal summer hiring has helped maintain a rate of 2.9% in May 2018. In May 2017, unemployment was 3.7%, so that is a significant drop.
What to do if You Are a Buyer or Seller
If you are thinking about selling a home in San Diego, now is a great time to capitalize upon the high demand created by the housing shortage and the low unemployment rates. If you are a buyer, try not to be discouraged. Remember that a home is an investment. Currently the construction of new housing cannot keep up with the high demand, so it is likely that the value of your home will only continue to rise after you make your purchase.