San Diego and Santa Clara County Markets - Are they that different?
There are a few factors affecting San Diego's housing market that have caused it to flatline the last few months however we are seeing a more positive outlook for the coming months. First, the beginning quarter of 2019 saw a fair share of adverse weather which impacted most of the U.S. markets. As the weather has improved we are seeing more activity in the market. Second, there has previously been more multi-family construction occurring than single-family homes due to the ongoing shift to renting rather than home ownership. However, we are seeing single family home construction increasing which is starting to outpace that of multi-family units. Third, there have not been enough homes avialable to middle-income families and rising interest rates have given would-be home buyers pause in making their home purchasing decisions. However, the Federal Reserve recently announced that no further interest rate hikes are planned for 2019. Fed actions also tend to affect mortgage rates, so the pause in rate hikes was also welcome news to the residential real estate industry.
The Bay Area was affected in the first quarter by some of the same factors as San Diego such as adverse weather and mortgage rate concerns. However, the Bay Area also felt impact due to the stock market volatility and affordability constraints and buyers’ concerns that prices had peaked. However, following a doldrum first few months of the year the for the housing market in the Bay Area, potential impacts around Lyft and Uber’s already filed IPOs and other anticipated IPOs are already being felt as activity is rising from both buyers and sellers.
Making It In San Diego
If you are wondering what the HOT areas of San Diego are, below I list the top 15 zip codes for San Diego County. With over 181 zip codes and 4,207 sq miles of total land area there are housing options in every price range. Santee is considered part of the East County Region, and for ~$550,000 you can live 18 freeway miles from the San Diego’s premier beaches. If you are looking for a home in a town that sits on the waters look no further than Carlsbad. The average price in this family friendly zip code is $1,089,000. If opulence and ocean views are your goal, La Jolla is a picturesque village by the sea. An ocean view can be found for as low as $1.7M however homes that are the talk of the town will run you near $7M with homes on the water selling for up to $20M. Rancho Santa Fe is the Beverly Hills of San Diego. This is where the stars come to live and play. Rancho Santa Fe is known for its luxury real estate and mansions that average 5000 sq ft. Rancho Santa Fe started as a ranching community and has countless orchards, sprawling land, and many groves of citrus trees. If you're planning on moving to The Ranch, be prepared to pay top dollar with an average sale price of $3.5M but you'll have perfect views of the beautiful countryside, and in some cases, even the ocean.