Will the real estate market in San Diego be affected because of the fires?
Posted on February 2nd, 2010 in Renting & Real Estate | 6 Comments »
Betty asked:
Im in Miami, we are planning to buy a home in the next 2 yrs in San Diego, now , we want to know if the wilfires ocurring the last days will affect the real estate market , and all in all the home prices,?
Colorado Real Estate
Im in Miami, we are planning to buy a home in the next 2 yrs in San Diego, now , we want to know if the wilfires ocurring the last days will affect the real estate market , and all in all the home prices,?
Colorado Real Estate
6 Responses
Longboat Key Homes For Sale
No, it won’t change that much because of the fires. San Diego is still a desirable place to live, but you’ll likely pay a bit more because most homes will have to be completley rebuilt.
Sarasota Real Estate News
Yes, it devastates those who lost everything. After the fires are finally contained, there will be issues with insurance claims and rebuilding. Unfortunately, after the hurricanes hit in FL, LA, and TX many of the homeowners still have not settled their claims. Properties are abandoned and create an eyesore. Hopefully it will not take San Diego area as long to recover as it has in the panhandle of FL.
Simi Valley Ca Real Estate
Well, there won’t be any houses to purchase. The land will remain expensive because its a desireable area and people will rebuild — California will always be the most expensive place to live, followed by NY and now South Florida
Walk In Bathtubs
It may have some short term effects – really too early to tell, now.
Thermage Skin Tightening
I currently have a home on the market about a mile from where many houses burned so I have given this some thought. I believe it will have an impact on the market in the short term. You now have around 2000 families who need homes and there are 2000 less homes available. Thus, supply is down and demand is up. I recognize that many will be wanting to rent, but others will not want to put their families in a cheap rental property for the year or more it will take to rebuild. Thus, basic economics on supply and demand says that the prices of homes will go up.
Cellulite Treatment
That’s a question I been pondering myself(whether its homes in La Mesa or La Jolla).
I recall there was a surge in rental property prices & demand when the Cedar fire occurred
but that was also during the height of the housing market. My sense is that there will be a bit of an increase in demand. However, there is a huge glut of homes on the market in San Diego with over 20,000 single family homes for sale (there was only 5,000 during the Cedar fire as I
recall). As a result, I am sure there will be people that will rebuild their homes that will
need a home while they do so but whether they buy versus rent is still unknown.
I do think we will see a spike in the economy as million/billions of Federal money will be
poured into the economy to the various trades that will help people rebuild. The one thing I
have seen in the recent downturn, is the adverse affect on remodeling of homes. Since many people financed 100% loans, there is little to no equity left and the using of home equity lines
for renovation/remodeling has dropped (for example Home Depot’s stock price & profits has
dropped to a 3 year low).
Regardless there are certain markets in the county that have been unaffected by the downward
pressure of prices (La Jolla, Del Mar, etc). With the fires that occurred in some of the upper
income areas (ie RSF & Poway) we may see the home prices and demand in La Jolla & Del Mar rise and the prices in the directly affected areas of the fires go down as demand may drop in the areas hit. Typically the upper scale homeowner in these areas have the ability to own 2 homes at
once.
I wish I had a crystal ball to give you the correct answer but I don’t and will have to wait
& see.