San Diego real estate investment projections
You make money in real estate...Is it when you buy? Or, is it when you sell? This question can be confusing, however the importance of making the right decisions when buying is the key to investment success. The research below from SmartZip shows San Diego outperforming the market for future returns by 17%. The San Diego real estate market is priced very well and there are some great deals right now. In real estate you have probably heard the three most important factors being... location... location... location... Well I disagree, a little... I believe it’s also a matter of timing. I worked with a couple a few years ago after looking at homes to purchase for several weeks, they finally found the perfect home for them. The house was updated, in a great neighborhood with great schools, ocean views from the master bedroom and outdoor balconies. However, the couple decided to wait, because they thought the market would go down in price. That house went into escrow within a week of my clients walking away. There hasn't been a home in that neighborhood on the market since that day. My clients are regretfully renting and still looking and hoping something will come on the market as good as that house, the one they feel in love with. They regret not taking advantage of buying the house they loved at that time it was available. I believe this market has made buyers a little fearful. They are afraid of the market going down further. They don't realize, this IS a down market. We are at the bottom of the well, looking up. And some read all the hype on line about the enormous amount of shadow inventory coming on the market.. giving the impression there will be hundreds and thousands of homes to choose from and certainly another would come on the market for even less. I hate to be the bearer of bad news... but sometimes, especially if it's a great house in San Diego... they just don't come on the market and sometimes it’s for years and years... If it’s a good deal on a great house in this market, my advice... jump on it!
HomeScore uses a scale of 1 to 100, and all properties nationwide are stack-ranked such that 50 is the
Properties that score above 50 are expected to outperform the market, while those that score below 50 are
expected to underperform. In general, a score between 35 and 65 is considered a “good” investment.
HomeScore applies proven stock and bond analytics to a comprehensive set of real estate investment attributes
spanning home price trends, economic and government factors, school quality, community demographics,
rental market and lifestyle.
These analytics compute expected appreciation, cost of ownership and projected return on investment upon
sale of the property in 10 years, and adjust them for expected risk associated with volatility of home prices in
Mortgage and other expenses are based on SmartZip’s automated valuation of the property’s fair market
value (“AVM”). The property’s expected sale price in 10 years leverages SmartZip’s projections of home-price
appreciation in the property’s neighborhood.