As one of the most attractive housing markets across the United States in 2017, San Diego broke many real estate records. According to a recent study presented by Mark Goldman, finance professor at San Diego State University, median home prices and sales activity in 2017 were actually higher than in 2005, the peak year of the U.S. real estate bonanza that went through a major correction in 2008.
For 2018, Professor Goldman expects many of the factors that propelled the housing market last year will continue to make San Diego an ideal relocation spot, particularly the downtown districts. Here are six reasons real estate for sale in 92101 will continue to attract homebuyers in 2018.
1. Tax Reform Will Not Impact San Diego Real Estate
While some housing market analysts believe the tax reform plan enacted by the Trump administration will impact real estate activity in some regions of the U.S., such is not the case for San Diego or even for California. First of all, San Diego has not experienced the high level of speculative activity seen in places such as New York City and Miami, where foreign investors have been busy selling properties to each other. Second, as long as homebuyers do not borrow more than $750,000 on their mortgages, they will still be able to deduct interest paid. Finally, the steady pattern of diminished supply and high demand San Diego has shown in recent years is unlikely to be affected by tax reform since it is tied to other economic factors.
2. Condo Prices Are Stabilizing
Downtown San Diego lofts, condos, and penthouses rose very strongly in value during 2017, but analysts believe 2018 is likely to bring stability to the market. Quite a few downtown homeowners refrained from listing their units in 2017. They will probably list this year and adjust their pricing accordingly to the benefit of prospective buyers.
3. San Diego Is a Healthy City
According to a report published by WalletHub, San Diego is the fourth healthiest city in the U.S. This determination was based on factors such as the cost of doctor visits, availability of fruits and vegetables, number of public parks and fitness facilities, climate, and exercise frequency among residents.
4. The Biotech Industry Will Continue to Create More Jobs
There is no question that the emerging biotech industry of San Diego will continue to expand, particularly now that the city of Guadalajara, Mexico, a major technology hub, is very interested in research and business collaboration. City and business leaders in Guadalajara have determined their own biotech industry boom needs to expand in a sustainable manner, and they are willing to send some of their project to San Diego. The life sciences sector tends to generate many jobs beyond the medical and pharmaceutical fields.
5. San Diego Is Craft Beer Heaven
With more than 155 microbreweries in San Diego county, craft beer lovers can enjoy a different local brew every day of the year, and most of these creations can be found at various downtown spots.
6. The Local Economy Is Strong
The local economy is perhaps the most important factor attracting new residents to San Diego in 2018. The University of San Diego conducted its annual economic assessment in January, and the forecasts indicate that the real estate, healthcare, and tourism sectors are on track to continue expanding this year.
From Little Italy to East Village, San Diego penthouses, condos, and lofts are expected to be more popular than ever this year. If you’re thinking about purchasing real estate in downtown San Diego, make sure you have a trusted agent on your side who is well versed in the local market. Call 92101 Urban Living today at 619-649-0368 to speak with one of our friendly agents and start your search.