San Diego Home Building

Low interest rates continue to drive the sale market and some experts believe rates could creep even lower but many believe they will remain steady for the next few months. These lower rates have allowed buyers to offer higher prices without hurting their bottom line and maintaining the same level of affordability. The San Diego job market continues to remain steady and strong with a current unemployment rate of 2.8 percent as of May 2019. San Diego County homebuilding on the other hand continues to struggle into 2019. According to the Real Estate Research Council of Southern California, there were 1,180 residential permits pulled in the first quarter 2019, a drop of 58 percent compared to the same time last year. The drop was largely the result of a reduction in the seemingly unstoppable apartment market as analysts pointed to the slowdown in rent growth as the main reason for the reduction. Land, labor, regulatory fees and materials have all increased impacting a slowdown in construction. In San Diego County, there were 9,975 homes built in 2015; 9,972 in 2016; 9,580 in 2017 and 9,579 in 2018. Borre Winckel, CEO of the local Building Industry Association, predicts the county will build fewer than 7,500 homes in 2019 due to the challenges listed above. Please call me to discuss your current housing needs. The county of San Diego is presented with so many different markets within itself as some are still thriving while others have slowed down. It's difficult for my clients to determine how their particular market is performing with just reading general news stories.......allow me to provide real intel and a professional perspective as education is key in any investment market.