GET REAL About San Diego Rental and Real Estate Prices (Sacramento: rental market, employment)

[RosieSD]

Another article about the rental situation in San Diego County.

Key take aways:

- The median rent at the bottom rung of the San Diego County apartment market rose nearly 16 percent faster in the last year than the market as a whole, said a new study from real estate website Zillow. Rent prices as a whole went up about 6 percent from June 2015 to June 2016, but the low-end zoomed up 21.7 percent.

- Zillow defined the bottom third of apartments, which they called “low-end,” in San Diego as having a monthly rent of anything under $1,950; middle $1,951 to $2,389; and high-end $2,390 and up.

- Apartments less than $1,400 a month had a vacancy rate of less than 1 percent, but units costing more than $1,900 had rates higher than 5 percent.

-San Diego’s low-end rent increases were the fourth highest compared to 14 other cities.

Bottom line: If you're willing and able to pony up more for rent, you'll have an easier time finding a rental in the elusive "safe and good neighborhood" than if you are on a tight budget in the low end that can't be adjusted.

Link to full article: San Diego rent increases go up fast at low-end | SanDiegoUnionTribune.com

[1AngryTaxPayer]

Isn't a sure indicator of a bubble not happening anytime soon is rents rising the same as a mortgage? Something drastic will need to happen for this current model to change.

[expatCA]

No Bubble, just more people wanting to live in CA than there are homes available. Supply and demand.

[RosieSD]

A few more months like July and we may just be bubbling.

July Real Estate Sales in San Diego Took A Nose Dive

The number of sales of existing homes in the county plunged in July, both on a monthly and annual basis, the San Diego Association of Realtors reported Tuesday.

The trade group reported that 2,089 single-family home changed hands last month, down 13 percent from the month before, and 16 percent lower than the same period last year.

The median price of a house in July was $565,000, up $2,000 from June and $16,000 from July 2015, according to SDAR data.

For condominiums and townhomes, 1,070 sold in July, 18 percent fewer than June and 16 percent less than July 2015.

The SDAR said the median price of a condo transaction was $381,000, up $4,000 from the month before and almost $42,000 from last year.

Real estate sales figures in San Diego County and many areas of the country have been hurt by a combination of high prices and low inventory, as fewer people make their homes available for purchase.

“The market is anxious for more home sellers to build up our local inventory,” SDAR President Cory Shepard said.


July Real Estate Sales in San Diego Take a Nosedive - Times of San Diego

[RosieSD]

And this is a related article -- the money to buy may be there, but not the inventory.

Many Renters in San Diego Actually Earn Enough to Buy

Homes in San Diego are among the most expensive in the country, but almost a quarter of renters here have sufficient income and credit worthiness to buy.

A new study by the online real estate firm Zillow found that San Diego, San Jose and San Francisco have the largest percentage of renters able to afford a media-priced home.

In San Diego, 23.6 percent of renters can afford a home at the countywide median price. That’s a smaller percentage than San Francisco’s 26.8 percent and San Jose’s whopping 35.6 percent, but well above Houston’s 6.8 percent.

The reason they aren’t buying, according to Zilliow, is that young adults are delaying many of the hallmarks of adulthood that typically lead to home ownership, such as finishing their education and starting families.

“When faced with hurdles of high prices and low inventory, first-time homebuyers are renting longer than ever before even if they are qualified to buy,” said Zillow Chief Economist Dr. Svenja Gudell. “San Jose, San Diego and Seattle are among the most competitive places for buyers, and the going isn’t any easier for renters.”

“This is a conundrum for many young people who move to those cities because of their strong job markets, only to find tight inventory and steep competition standing between them and their dream home,” she added.

Many Renters in San Diego Actually Earn Enough to Buy - Times of San Diego

[metoque]

Many people have wised up about inflated prices and aren't falling for it.

[LamarOdomsDealer]

I have friends from out of state who think I'm an idiot to not buy a home. I'm a single person and I don't have much security. If I were to buy right now I would be spending most of my $$$ on a down payment for a condo (cannot afford a house). If I say lost my job in 2 years, I could see myself selling it breaking even or losing some $$$ (how much of a cut do realtors get again? 20%?), or keeping it as a rental property but I don't want to be a landlord or hire someone to act as one. I just don't see the point buying if someone is in my situation.

In any case with rentals, I think this time last year on average a 1b1b apartment was $1500 and a 2 bedroom (not sure about how many bathrooms) was $2000. I'm paying $1900 for a 2b, 1 1/2 bath and think I'm overpaying!! I've been browsing apartments online the last few months and I think the averages have gone up for 1 bedroom rentals. I'm seeing more 1b1b above $1500. Probably more like $1500-$1700. The 2 bedrooms seem to be about the same though. The apartments I'm between right now (yes I know I talk about it excessively!) is a 2b2b in La Mesa for $1450 (I'm honestly shocked that it's that low. I lived in that complex a few years ago when it was $1275 and they were great apartments and in a safe, pretty area with trees) and a 1 bedroom in Crown Point for $1525 which doesn't include water or trash.

[someguy10]

Originally Posted by LamarOdomsDealer

I have friends from out of state who think I'm an idiot to not buy a home. I'm a single person and I don't have much security. If I were to buy right now I would be spending most of my $$$ on a down payment for a condo (cannot afford a house). If I say lost my job in 2 years, I could see myself selling it breaking even or losing some $$$ (how much of a cut do realtors get again? 20%?), or keeping it as a rental property but I don't want to be a landlord or hire someone to act as one. I just don't see the point buying if someone is in my situation.

In any case with rentals, I think this time last year on average a 1b1b apartment was $1500 and a 2 bedroom (not sure about how many bathrooms) was $2000. I'm paying $1900 for a 2b, 1 1/2 bath and think I'm overpaying!! I've been browsing apartments online the last few months and I think the averages have gone up for 1 bedroom rentals. I'm seeing more 1b1b above $1500. Probably more like $1500-$1700. The 2 bedrooms seem to be about the same though. The apartments I'm between right now (yes I know I talk about it excessively!) is a 2b2b in La Mesa for $1450 (I'm honestly shocked that it's that low. I lived in that complex a few years ago when it was $1275 and they were great apartments and in a safe, pretty area with trees) and a 1 bedroom in Crown Point for $1525 which doesn't include water or trash.

In most areas selling a place costs 6% in realtor's fees -- 3% to the seller's agent and 3% to the buyer's agent. I think you are wise to not buy in SD -- buying does not make sense if you don't have the security/net worth to ride out down cycles.

Since you're single, have you thought about moving elsewhere? There are plenty of places where $1000/mo rents you a nice single family home with a modest yard and $10-15K plus $1000/mo buys you a similar home.

[Liz_7]

Originally Posted by LamarOdomsDealer

I have friends from out of state who think I'm an idiot to not buy a home.

Sounds like they have NO idea what real estate prices are like here. And sure, you can own for a monthly payment comparable to renting, but you also have to take into account all the fees, property taxes, insurance, etc. A realtor friend told me the rule of thumb is for buying to be a sound investment, you should plan to be in the condo/house for at least 5 years.

I feel your pain because I'd like to own, but it makes zero sense for me at this point.

[NYSD1995]

The risk of job loss is always present, nothing is guaranteed. That said, it's all relative. If you are renting for 2k/mo and you are buying for 2k/mo, you have the exact same risk of job loss. The real issue is that SD is a transient place, most people don't stay, so I would ensure that you are committed to SD before buying.