2022 is eight months in, but there is still plenty of time left to learn about the San Diego housing market.
When looking for a new place to live, San Diego is at the top of many minds. Buyers and sellers that are looking to relocate to a new neighborhood may also be interested to know about the current market.
Keep reading to learn about the 2022 San Diego real estate market and how it will affect the following year.
Low Inventory, High Competition
In the world of real estate, low inventory and high competition equate to a seller's market. There are only so many available homes in San Diego so the market is very competitive for homebuyers.
There are hints of a crash in the San Diego housing market, but the seller's market is still going strong.
For home sellers, this is good news. Your home is likely to sell for more money and stay on the market for less time. 2022 points to a continued housing boom that could possibly continue the following year.
New Home Construction
To meet the high demand for homes in the California housing market, new home construction is trying to catch up.
New home builds are in demand, but there are factors that complicate the construction process. The role of construction and development in San Diego is kind of a wildcard.
The pandemic continues to impact construction because prices are increasing, there is a shortage in labor, and there are many backlogs of building equipment and materials.
The obstacles are lengthening the timeline of new home builds in San Diego in 2022.
Even so, new construction isn't slowing down, just taking longer to complete. Thousands of housing units have been completed in the year thus far.
Non-residential construction projects are a major part of the construction. Government-funded projects keep builders busy this year. These can help with job growth and increase the demand to live in San Diego.
There are more homes available to choose from because of new construction builds. Still, the demand is so high that even these new homes cannot keep up.
For homebuyers not in a hurry to find a new place to live in San Diego, holding off on the market can help you get exactly what you are looking for.
October Is the Best Time to Buy
San Diego home prices fluctuate throughout the year, just as they do in any market. Timing is everything when it comes to the housing market in San Diego.
Spring is a popular time to sell a home so buying a home can be difficult during this time. You are likely to run into more competition when more homes are on the market.
On the opposite end of the spectrum, the best time to buy a house is in October. You can save money in late fall because it's easier to enter the housing market during this time.
You can score better deals in the winter, but you may come across higher mortgage rates.
San Diego Neighborhoods Range in Prices
The real estate market in San Diego has a lot of variety from neighborhood to neighborhood. Not only will home features be different between these areas, but home prices differ as well.
If you switch your home search from one area to another, you might find a drastic difference in the average home price.
The top-rated neighborhoods will have higher home prices. These areas are worth the money to a lot of families who want to find a community with top-ranked schools.
Neighborhoods like Miramar Ranch North and Sabre Springs are on the lower end of the price range spectrum. The average home values jump to over $1 million in neighborhoods like:
- Torrey Hills
- Pacific Highlands
- Del Mar Mesa
Torrey Hills, Del Mar Mesa, Sabre Springs, and Miramar Ranch North have a more urban feel. Pacific Highlands Ranch is more suburban and filled with nature.
San Diego Housing Market Is a Bargain
Compared to the rest of California, San Diego stands out as an affordable real estate area. Compared to the national average, San Diego real estate is still relatively high.
In some areas of San Diego, there is a decline due to decreasing demands. However, mortgage rates are on the rise so even if home prices were to decline, the overall price is likely to remain similar.
Affordability is an issue for home buyers and investors looking to purchase homes in San Diego in 2022.
You'll need to dive deep into San Diego's cities and neighborhoods to understand if investing is the best option for you. However, since San Francisco and Los Angeles are priced much higher, you could benefit from San Diego real estate.
San Diego also has a good job outlook. The recovery of jobs after the pandemic is good news for the housing industry as a whole. Investors might be able to jump on this trend as well.
San Diego is one of the hottest markets in the country and continues to be year after year.
Additionally, San Diego is a large metropolitan area home to several universities and colleges. With a diversified student market, investors can buy multiple properties across the city and enjoy diverse investments.
If you can't fill units with students, the housing market in the area allows you to rent them to newcomers in San Diego or to military officers.
Rent Prices Are Rising
The San Diego real estate market is expensive but still ranks below several West Coast cities.
Rent prices are increasing because there is a massive demand for San Diego rental properties by those who can't afford to buy homes. As the city grows, the rental market will continue to grow.
Understanding this fact about the San Diego real estate market is beneficial for investors, homebuyers, and sellers. Investors can make rental income by setting high rent prices.
Homebuyers who want to save a bit of money before purchasing a new home might choose to rent for the time being. There are different rental options available for those in this situation.
As the fall season is growing nearer, sellers looking to make a big buck from their home sales might not get the exact number they want.
Since home prices tend to decrease during this time, it might be beneficial to rent out your home until the market is in a better condition for selling.
San Diego doesn't have rent control so this area is better for landlords and real estate investors. Plus, San Diego's housing market is appropriate for short-term rentals.
San Diego Is a Hot Place to Live
If you don't currently live in San Diego, you might be looking for a home in the area because it is a hot place to live.
San Diego has beautiful sunny weather, impressive beaches, and hundreds of parks. San Diego is ranked as one of the best places to live and retire. It is, however, also ranked as one of the most expensive places to live.
In a study on 150 metro areas in the United States, San Diego ranked #3 in the best places to live in California and #12 in the best places to live for quality of life.
Many San Diego residents and those looking to move to the area fear that there is going to be a housing crash in the near future.
Before the last crash, people getting mortgages weren't qualified and there was a credit bubble. Most borrowers these days are highly qualified to buy homes in the area.
San Diego is experiencing low turnover rates, one factor that indicates there won't be a housing crash this year or the next. Turnover in real estate refers to people actively selling their homes and looking for new places to live.
A turnover rate indicates the wait-and-see attitude of homeowners who want to sell their homes but aren't sure if now is the best time. This leads to lower sales volume.
The employment scene is also healthy compared to other areas around the country that are still suffering from the COVID-19 fallout.
If San Diego was a state, it would be the 26th largest economy. The economy is in a pretty good state despite there being talk of a recession because of higher inflation rates.
San Diego Housing Market in 2022 Explained
There is a lot of hearsay about the San Diego housing market in 2022. Although this year is more than halfway over, it's still important to know how the rest of the year will play out.
Buyers, sellers, and investors can use this guide to make the right decision for them.
When you are ready to make your move, we are here to help! Contact us today if you are looking to buy, sell, or relocate to San Diego.