What Happens When San Diego Home Values Return To Peak Levels?
San Diego home values have been rising rapidly. So are they finally back to their previous peaks, and if so, what’s next for local homeowners and real estate investors?
Statistics show that foreclosures continue to trend down while home prices and demand continues to grow. However, do these stats identify a return to peak levels reminiscent of the pre-bubble era?
Locals may actually be seeing their San Diego home values returning to their previous highs. According to a new report from UT San Diego; Penasquitos, Mission Beach, Pacific Beach, Mission Hills, Encinitas and Carmel Valley are all now less than 10% off of their peak home prices.
However, some areas still hold a lot of value and have a lot of room to grow:
- Alpine -37.1%
- Chula Vista -45.1%
- El Cajon -30%
- Escondido E -35.2%
- Oceanside (Central) -19.5%
- Ramona -35.8%
- Spring Valley -37.4%
What happens when San Diego home values return to their previous peaks? Will all the deals be gone and will opportunities for growth be over?
Based on historical housing cycles, once local home prices reach their previous peaks, we can expect an average of 10 more years of growth during which home prices can double on average.
The bottom line is that now is an awesome time for buying homes in San Diego County. Some areas may offer more appreciation and wealth building than others, but based upon history, it’s going to be pretty difficult to lose over the medium term.
Of course, those homeowners in the hardest hit neighborhoods of San Diego County might not be able to hold out that long to get out of being underwater and should still consider selling. The sooner they do, the more options they will be presented with.