San Diego Real Estate Forecast 2011

San Diego Real Estate is headed towards a slow paced recovery in 2011. According to the California Association of REALTORS the housing market will see a small increase in home sales and the median price in 2011. This increase in activity will be a result of the expected recovery of the economy as well as some modest job growth.

Since hitting the bottom low in April of 2009, San Diego home prices have risen 10%. The forecast in 2011 is that San Diego real estate will see a slight increase in the median home prices of less than 1 percent. While the improvement may seem small, it is still moving in a positive direction. Check out great deals on La Jolla Condos

San Diego is one of the few cities in the nation to experience a year over year increase on an average of 1.7 percent. There has been some concern about the indications that lenders will send an influx of distressed properties into the market. Distressed properties will still play a prominent role in the housing market, but we can also expect to see more traditional sales to help balance the market.

 

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Home sales are also expected to rise in 2011 and it will likely continue to be a “buyers market.” This year will be a great opportunity for first time home buyers, investors, and those looking to upgrade or downsize. The prediction is that San Diego real estate will experience an increase of 2 percent in sales. The San Diego housing market continues to be clearly divided into two markets, homes priced above $500,000 and homes priced below. Homes below $500,000 have been constrained by a lack of inventory, putting upward pressure on prices. These homes are also receiving multiple offers in most cases. The upper end has also seen an increase in sales and it is expected to stay steady for the rest of this year.

 

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Job growth and economic recovery will play a significant role in the recovery of the San Diego real estate market. In 2011, employers in San Diego County are expected to add 15,000-18,000 workers. The areas with the most demand are restaurant waiters, bartenders, temp workers and computer specialists. The San Diego Workforce Partnership anticipates a 2 percent growth in the service industry, a 1 percent growth in office and administrative support, a 2 percent increase in computer specialties, 2 percent in construction, 2 percent in education, and a 2 percent growth in health care. This job growth will help move the general economy into recovery including the housing market.

 

The San Diego real estate forecast for 2011 is, favorable home prices and historically low interest rates will continue to make owning a home in San Diego attractive for those who are in a position to buy.