Rents Hold Steady in San Diego. Good or Bad?

How much longer will rents hold steady?

As a REALTOR in San Diego I look at all aspects of the San Diego real estate market. Today I was looking over some rental statistics that drew my attention. This was an article on the stability of rental prices here in San Diego.

The article goes on to basically say that rental prices are relatively steady with very low vacancy. This could be an indicator that some of the potential buyers that didn’t take advantage of the several first time home buyer credit have decided to step onto the sidelines. Being a first time home buyer can be stressful and having been one once I completely understand their decision. This theory is reinforced by the statistic of low vacancy rates.

In conjunction properties are lasting longer on the market which further reinforces my theory. On the flip side of this coin is the data that shows that of the homes that do sell they’re selling for about 5.9% more than at the same time last year. Remember that a well priced home will always sell and it will more than likely attract multiple buyers quite possibly resulting in having a choice of offers.

One bad note the article also went on to say that San Diego rental prices are poised to go up by about 2.1% in 2011. though this is a small increase in rent it can still affect anyone in the rental market as more money has to come out of pocket. Also if the vacancy rent continues steady, or god forbid goes lower, there could potentially be more renters out in the market place than rentals. Even if we don’t run out of rentals this basic example of supply and demand tells us that the rental marketplace will be more competitive for those prime locations we all want.

The San Diego housing market has given several indications of steadying. There’s still great opportunities in the marketplace with foreclosures, short sales and regular sales out there with great potential. It’s predicted that more foreclosures are coming and that might be so. Only time will tell. So, the next time you’re asking yourself “How’s the market?” feel free to ask me at [email protected] . It could be your time to buy, or not. Let’s figure it together!