The real-estate industry is evolving and reaching its all-time highs for so many reasons. A recent survey by Business Wire suggests, that the prices of houses rapidly increased nationwide with a notable rate of 8.5% from Nov 2020 to Dec 2020. Why are we observing a wild fire spike in the prices of housing across the nation? It’s because of so many underlaying reasons, some of the them are explained below:
COVID-19 has made people realize that owning their own place or land is crucial in such times. More people are staying in and working from home ever since the pandemic occurred. And most people are facing trouble in coping up with the increased rents and expenses. However, there is a solution to it now, people that pay a lot for small apartments in big cities can now move to places like “sunny” San Diego and get a home for the price of their current condo.
Another issue in discussion is that high-rise owners have to share elevators or take the stairwells up dozens of flights of stairs to get to their condo. Working from home has also allowed companies to give their employees pay cuts to move to other cities. And some San Diegans have already left, while others are planning on leaving California to go to less expensive states. Whereas, others are trying to move to a better place to live in; San Diego. Everyone is trying to remodel their homes or planning to get their own property to avoid paying thousands on rent. That created a shortage of real-estate contractors and single-family homes for the ones seeking consultation.
Besides in San Francisco and New York City, downtown condos are also rapidly increasing in value. Last year the average house in the United States went up over 8% year to date! Whereas 2021 growth projections are to increase by at least 7% nationwide. Besides, interest rates are at peaks and have reached an all-timer low. In short, 2020 was definitely a record-breaking year for the real-estate industry.
As for the San Diego market, some of the current statistics are explained further. As per Norada Real Estate, the existing median price for a single-family was $740,000, approx. up +12.3% from a year ago. The home values of San Diego County have increased up to 11.2% in 2020 and the current prediction is that they will further experience an increase of 11.4% in the next twelve months.
At present, $2700 is the median rent in San Diego. However, the rent offers you would receive from property managers would be much higher for a single-family property in San Diego. Since 2015, the average price of a home in San Diego has increased by approx. 90%; from $379,000 to $720,031.
All of these things are severely affecting the current housing market and will only continue to do so in the near future. Considering the given situation, I understand the struggles of my customers and thus, I provide guidance about budget-friendly housing schemes and available properties. My aim is to make the buying process for real estate much easier. If you have any questions regarding the market and market forecast feel free to contact me.
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