Home sales have fallen this year as housing prices and mortgage rates soar to historic highs. Despite the dip, select markets in the United States are believed to see a comeback next year.
San Diego, in particular, is forecasted to become the top real estate market in 2024 should mortgage rates drop, according to the San Diego Union-Tribune, citing Realtor.com chief economist Danielle Hale. She forecasts that the metro will see an 11% bump in sales and a 5.4% increase in home prices in 2024.
Here are three reasons why San Diego can become the top real estate market in 2024
Its Robust Economy
San Diego is known for its robust economy, which is supported by a diverse range of industries that include biotechnology, defense, telecommunications, and tourism. There is also a wealth of employment opportunities in the city. Some of the largest employers in San Diego include the U.S. Navy, the University of San Diego, Cubic Corporation, Pulse Electronics, and Scripps Health.
Its Variety of Housing Options
Homebuyers looking to purchase a property in San Diego are spoiled for choice. The city's real estate market features a variety of housing options to suit different lifestyles-from suburban family homes and condo units to luxurious beachfront properties. The city's short-term rental market is thriving, especially because the city welcomes millions of tourists each year.
In addition, the city also offers distinctive neighborhoods, each with its own unique characteristics. Neighborhoods in and around the downtown area serve as the heart of the city's business, arts, and entertainment communities. Those along the coast offer a more laid-back and upscale community for young professionals, families, and retirees.
Its Steady Housing Prices
Between January and September of this year, housing markets in the U.S. have seen a dip in home prices as mortgage rates soared past 8%. However, homes in San Diego's market continued to experience a steady price increase. Single-family and attached homes have seen their values increase by 10%, with detached homes hitting $1 million, as reported by LuxurySoCalRealty. The city's housing market has also seen an increase in inventory amid soaring mortgage rates.
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