This is a San Diego real estate market like I have never seen. This is a San Diego real estate market like most of us have never seen. San Diego home prices are skyrocketing and at the present moment, there doesn’t seem to be much of ceiling in sight.
San Diego Home Buyer Experience
Buying a home buyer right now in San Diego is competitive, takes strategy, and takes sheer determination and persistence. My biggest concern for my clients and any other home buyers for that matter at the present moment is not doing enough or not doing anything and getting priced out of the San Diego real estate market.
Ask anyone who was looking for a home last year and has not been successful yet in purchasing a home. If they did not raise their price point, the homes they are now seeing are far less desirable than the ones last year. Prices are rising incredibly fast.
San Diego Home Prices are Rising Fast
Nobody knows what will happen in the future, nobody knows what will happen tomorrow but I can tell you this: Just about every real estate expert analyst report and article I have read recently predicts home prices to continue to rise throughout 2021 and probably into 2022 now. How high that is anybody’s guess. Will they come back down.? Yes, at some point but the problem is how high will they before they start to drop again and how low will they actually be?
Massive Change in Home Office Necessities
A couple quick things to understand. One is that we just experienced a massive change and shift for our generation. People proved they can work effectively from home. Will people return to the office. Absolutely. Will everyone return to the office? Probably not. Will people spend more time working from home. Most likely. Will people want better spaces they call home to work and live in. Absolutely yes. People can live wherever they want in a lot of circumstances and they are. I don’t see demand to own a home, a great home, slowing down anytime soon. Maybe for a very long time.
Home Prices Started Climbing Years Ago
Also, you need to understand there was something of a shift happening even before the home prices to started to skyrocket in 2020. Prices were on a pretty good upward trajectory in 2019 and early 2020. There is a shift happening. My biggest worry is for first time home buyers. I hear people talking about it all they time. We’ll wait for prices to drop and then buy a house or this is a bubble and we will just wait until that bubble bursts.
San Diego Home Prices Might Not Ever Drop
What if the market doesn’t shift? What if prices don’t come back? What of this is the great divide were the wealthy become wealthier and if you don’t own real estate, well too bad. I’m not saying that is what is happening because I don’t know. Nobody knows. But what if that’s the case?
You Might Never Be a Home Owner in San Diego
51% percent of people will be a renters or tenant their entire life. It is so hard to build true wealth if you remain a renter. There are other ways of course but the most common way is by owning real estate. My fear is that 51% statistic gets bigger. Much bigger.
Anyway, I am sort of thinking out loud but you get my point. This is a market like we haven’t seen. This is an economy like we haven’t seen. The middle class continues to shrink. The divide between the rich and the poor continues to widen. Is this massive run on home prices just another sign of a longer term trend? We shall see.
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