San Diego real estate: investors move in as local market heats up
By John Lefferdink
Last
, we discussed the ways in which median market gains and lower prices on high-end homes have boosted opportunities for move-up buyers. However, as noted in a recent
real estate report, there is also another side to the story. Here in
San Diego, real state investors
are moving in and buying up homes in both median and luxury markets in numbers unlike any we have seen since 2005. By boosting competition for properties throughout the county, these investors are presenting greater opportunity to sellers. With inventory dwindling and prices on the rise, buyers are eager to close and increasingly willing to make prompt offers – making now a prime time to put your home on the market.
New real estate investing trends
The U-T reports that 1,030 San Diego County homes were sold to absentee buyers in June alone. That’s higher than any other such sales report since June 2005, when risky real estate investing was at its pre-recession peak. But this time around, the investors in question are “pretty sophisticated,” according to analysis from University of San Diego real estate professor Norm Miller. Miller tells the U-T that today’s absentee buyers are approaching deals very differently than their counterparts did during the so-called “dumb money” period between 2003 and 2005.
Of course, current inventory levels add a new dimension to investor buying activity. With less than 6,000 homes for sale throughout San Diego County, investors and resident homebuyers are fighting for property in the low-to-median price range. This competition has prompted some investors to make an unusual move: branching out into higher-end markets. By buying homes above the million-dollar mark and performing efficient renovations and upgrades, some investors have succeeded in turning a handsome profit – and playing into the rise in move-up buying activity taking place in San Diego’s North County market. For both buyers and sellers, then, today’s real estate climate presents the potential for a win-win scenario. Those with a high-end home for sale can secure a quick deal by selling to investors, or wait a little longer and hopefully snag resident buyers who are willing to outbid the competition. Meanwhile, these buyers have the benefit of newly revamped properties to choose from, and a general reduction in prices across the board.
Whether you are looking to buy, sell, or simply learn more about the
, feel free to contact our team at
for the best in expert market advice. Get in touch today: call (858) 756-8098, or visit
.
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