San Diego: Luxury Home Hot Spot
San Diego is fast becoming the hottest real estate market for luxury homes. While real estate continues to appreciate, luxury homes are still the focal point of many investors in this area. What does this trend mean for the market? What does the data reflect? More importantly, how can real estate investors capitalize on the high demand for these luxury houses in Southern California? San Diego continues to grow, siphoning off home buyers and real estate investors to Los Angeles, San Francisco and even New York. The media has also noted that San Diego real estate continues to get more expensive, but it is still far cheaper than other hot spots. Buyers are scooping up condos, custom ocean front homes, ranch and mountain estates, vacation homes and a variety of single family and multifamily rentals. Real estate investors have been quick to convert distressed properties and REOs to rentals and flip luxury homes. This trend has become incredibly lucrative for those who have taken advantage of this opportune moment in the current market. In recent months, it has become more difficult for investors and regular buyers to acquire a home. More importantly, what is left has become a sought after commodity. Bidding wars, sometimes with over 100 hundred offers per listing, were just too hot. However, as predicted, changing seasons have loosened this up for San Diego real estate investors and home buyers. The recession may have led to a low supply of new homes being built, which has fueled the market even further. Even during the slowest months of the year, San Diego County prices have continued to rise. At the same time, foreclosures have continued to tick upwards. Despite reports, foreclosures are still readily available and more are on the way.Those expecting this are taking advantage of their opportunity. According to DataQuick, San Diego County foreclosures rose 18.5% from September to October. Experts predict there could be even more on their way, as the effects of the recent government shutdown are expected to play out soon. This is great for value seeking investors in search of short sales, REOs, auction properties and motivated sellers.