Real estate trends – Mission Times Courier
By SARAH WARD
The California Association of Realtors recently hosted a workshop on Real Estate Trends and Forecasts for Our State and I wanted to highlight for you some of the most interesting takeaways from the event.
We are all aware that the work-from-home movement has accelerated dramatically over the past year, but there are a number of rural areas in California that still do not have adequate broadband access and there are a number of rural areas in California that still lack adequate broadband access. There are calls to step up investment in Internet access for these areas. These areas, such as along Highway 99 through the Central Valley, the high desert above Los Angeles, parts of rural northern California as well as parts of eastern San County Diego is experiencing substantial growth in housing development, but the lack of adequate bandwidth is causing difficulty for those hoping to work outside of conventional employment centers. The Association of Realtors expects these areas to experience the strongest growth in the future, but the infrastructure is not currently keeping up.
Another big takeaway is that the past 16 months have had the most impact on our low income residents as this category has seen the biggest job losses while seeing their cost of living especially the rent and fuel, increase dramatically. Interestingly, there is a significant migration of low-income people leaving California for places such as Nevada, Arizona, and the Northwest.
Panelists mentioned that coastal regions can expect a shortage of workers in the service sector, which will lead to higher wage rates and a further rise in the cost of living. Look for a $ 7 coffee shop, for example, and upcoming $ 12 sandwiches. The lower middle class is also now seeing trends in net migration out of California. The high cost of living is pushing out many people, leading to labor shortages and this trend is expected to continue.
Another topic discussed was the explosion in home equity. As many homeowners suddenly have equity in the hundreds of thousands to up to a million dollars in equity, this causes people to consider going up or down.
I have a buyer who is currently selling his $ 900,000 home and moving to a $ 1.3 million dream home in East County. However, other homeowners are now seriously considering selling and trading by moving out of state or to a more rural part of California. I have a client who was showing me properties west of Las Vegas on a golf course for $ 575,000. Their house has nearly $ 900,000 in equity, so they’re going to take the big step forward to downsize, while putting nearly half a million in the bank for retirement. Plus, they’ll have a lower cost of living and lower taxes in Nevada. This is one of the big trends happening right now.
Another topic discussed is that big tech and biotech continues to thrive in the state (especially here in San Diego), but at least 30% of workers will be working from home, reducing freeway traffic and bringing more traffic. very well paid young workers in our region. However, it was mentioned that the high cost of living is expected to accelerate, forcing businesses to expand outside of California or leave California all together. The expansion of super-fast 5G broadband is one of the most important factors for the jobs that end up leaving our traditional employment centers.
Finally, there is a continuing trend for out-of-state Americans and international people to move to our coastal regions, such as San Diego County, and bring substantial wealth with them. The problem will be to find service attendants to fill the restaurants and businesses that these new residents will like to frequent. Expect house prices and the prices of âeverythingâ to continue to rise here.
Single-family home statistics
92115 College Area: Median price of $ 725,000, enrollment up 44% year over year.
92119 San Carlos: The median price of $ 970,750 with new listings and closed sales has almost doubled.
92120 Allied Gardens / Del Cerro median price of $ 990,000 with closed sales up 66%.
More inventory is hitting the market now and I expect this to continue through the fall. The market is slackening a bit now. Call me for a no-obligation discussion on your real estate options at 858-431-6043.
– Sarah Ward is a Real Estate Agent at Fine & Coastal Real Estate.