5 trends to watch out for in 2021, by

Denise Matthis

5 TRENDS TO WATCH OUT FOR IN 2021

If you live in San Diego, then you know that it is one great city that offers you lots of activities, places to go and many jobs as well. However, for those who would like to move down to San Diego or are looking to buy a home, there are major changes coming your way. Some of these changes are advantageous, and there are others that could turn out to be challenging for you. Listed below are five trends to watch out for in 2021, and if you pay close attention, you might be able to use these trends to your advantage throughout the year.

SERIOUS MARKET UNCERTAINTIES

There are many events going on around the world, including unemployment rates going through the roof in San Diego, major shutdowns of businesses and schools because of the pandemic. With all of that, including protests and riots, it’s going to be an interesting year in the real estate industry, and the market would be quite uncertain throughout the year. VALUE OF SAN DIEGO HOMES WILL RISE

2020 ended with San Diego’s real estate inventory reaching the lowest it has ever been, and this would affect the value of homes as the low supply would lead to the rise in the price of homes. Experts predict the values of San Diego will rise by 4.3%, and rentals will outpace homes with an increase of 8.6%. Homes that are priced at $2 million have a high rate of pending sales, and it is bound to keep going up as the year progresses.

MORE PEOPLE WILL BE MOVING TO SAN DIEGO

San Diego remains one of the top-rated cities to live in; this is because it offers residents income growth and job opportunities. This has led to an increasing growth in the population size and the rise of home values in the city. As many more industries jump into high gear in this location, there is money flowing in and jobs to be gotten. With these results, it is expected that there will be more people moving into the area to get jobs. A

rise in population also means a boom in the retail section; this would encourage many entrepreneurs and investors to make a move to the city.

THERE WOULD BE A SHIFT IN GROWTH

Many investors are invading San Diego on a search for profitable industrial properties; this would have an effect on job growth as well as the housing needs. Most investors can be found in the last-mile distribution, and this is advantageous to the needs of logistic companies and retailers but doesn’t leave much room for growth opportunities as it used to be. However, there are many more opportunities available in San Diego, and there might be lots of growth to be found in the East Village.

THERE WILL BE AN ISSUE WITH AFFORDABILITY

If there’s anything that might be holding the city back, it would be the lack of affordable homes. The decrease in supply has led to a steady increase in home values; this leaves few affordable homes for the majority. The median price of homes is set at $500,000, while the median income in the city is set at $63,400. Having an affordable home option will raise interest in new businesses and rising professionals and will encourage sales of home in the region. However, there are fund programs that most people with steady jobs but have low incomes can try out. The programs offer different levels of loans based on your credit score and are based on the home buyers being able to cover the closing cost of a home and the required down payment.

Reference

https://medium.com/@sdrehunter/5-san-diego-real-estatetrends-to-watch-in-2020-2021-870784b2d4be https://www.sandiegorealestatehunter.com/blog/san-diegoreal-estate-trends-i-am-seeing/