San Diego rents are increasing!

An article found on www.OurCitySD.com stated that according to Axiometrics research company, the average rent for an apartment in San Diego has gone above $2,000 a month! Specifically, it reached $2,005 in June 2017.

The rental market has been strong in San Diego for quite some time and will continue to stay strong as our city is such a beautiful and desirable place to live! By owning property and converting it into rental income you are setting yourself up for positive cashflow and a strong long term investment.

Do you know anyone whose rent has increased recently?

Now is the time to own real estate in San Diego while mortgage rates are low and you can get a fixed payment amount that will not increase.

http://ourcitysd.com/neighborhoods/san-diego-apartments-rent-for-more-than-2-000/#sthash.3QGjI6qc.dpbs

San Diego average apartment rent passes $2,000

The average monthly rent for a San Diego apartment has eclipsed $2,000 for the first time. According to Axiometrics Research, it reached $2,005 in June. So it’s two grand plus a cup of Starbucks' Caffe Mocha (Venti)  …

Rent has increased every month for the past six months, the research firm found.

If you rent, you weep.

If you own or invest in apartments, it’s a whole other story.

At least for now.

“San Diego continues its run as one of the strongest apartment markets in the nation,” said Jay Denton, vice president of analytics for Axiometrics. “However, a warning sign may be in place, since job growth has declined in April and May.”

The year-over year increase placed annual effective rent growth at 4.9 percent, the highest rate since October 2016’s 5.3 percent and good for the sixth highest nationwide among major markets, according to Axiometrics. Occupancy remained steady at 96.3 percent.

A March report by MarketPointe Realty Advisors had the average monthly rent for a San Diego County apartment at $1,748. In downtown, the monthly average was $2,149. So the rest of the city is apparently catching up.

Shrinking inventory in San Diego

The San Diego real estate market is hot hot hot! 🔥🔥🔥

More houses are selling in SD and new active listings are declining all around California-- which makes for little inventory and an aggressive atmosphere for buyers! Mortgage interest rates are still historically incredibly low which is undoubtedly a contributing factor to the increase in sales.

California Association of Realtors reported that the number of houses that sold in May 2017 in SD County was 16.1 percent higher than April 2017. That's a big jump heading into summer!

Another interesting fact about California real estate, is that the median sales price in our region in May 2017 was $605,000. That number is $15,000 higher than the previous month in April 2017, and $40,000 higher than in May 2016!  Some may argue that many people are getting priced out of living in San Diego due to the higher prices.

I'm happy to answer questions about the home buying process that you may have.  With this competitive environment working with a professional who has been in the business for 10+ years is imperative!



http://www.kpbs.org/news/2017/jun/20/despite-surging-home-prices-house-sales-16-higher/

Despite Surging Prices, Home Sales 16 Percent Higher Than Last Month

Tuesday, June 20, 2017

By City News Service

The number of single-family homes that changed ownership in the San Diego region in May surged despite a continuing climb in prices, reflecting a trend that occurred throughout the state, the California Association of Realtors (CAR) reported Tuesday.

The number of houses that sold last month in San Diego County was 16.1 percent higher than the month before, and 4.1 percent above the same period last year, according to CAR data. Sales totals have been constrained because of a lack of inventory.

The median sales price in the region in May was $605,000, or $15,000 above April. The figure was $40,000 above that of May 2016.

CAR reported the median sales price for a house statewide in May was $550,200, the highest in almost a decade. That's 2.3 percent above April and 5.8 percent more than May of last year.

Statewide sales totals were 5.4 percent higher from the month before and 2.6 percent from the year before.

"Mortgage rates dropping to the lowest level since November could have been a motivating factor for the sales increase in May," said CAR President Geoff McIntosh. "The low interest rate environment, however, may not last long as the Federal Reserve's gradual rate hike and plan to reduce its balance sheet will likely lead to higher rates, and could change the momentum of the market."

CAR Senior Vice President and Chief Economist Leslie Appleton-Young noted a disconnect between buyers and available homes for sale will continue to elevate prices and worsen the affordability problem.

New active listings around California declined for the 23rd straight month in May, falling 12.4 percent from a year ago. The drop, associated with May's heightened sales figures, will combine to make the inventory problem even worse, according to CAR.