San Diego Market Update: August 2020

by Steve Welty, Broker/Owner of GL Realty & Investments and Good Life PM

Here are the San Diego real estate headlines worth reading about for August 2020, along with my key takeaways.

Home prices keep rising as San Diego outpaces the rest of California

  • As of May, prices in the San Diego metropolitan area had risen 5.2 percent in a year, the S&P CoreLogic Case-Shiller Indices reported Tuesday. The county’s price gains have outpaced those of Los Angeles and San Francisco for 10 months.
  • Experts attribute the increase to low mortgage interest rates and a declining number of homes for sale.
  • The San Diego County median home price for a resale single-family home in May was $650,000, according to CoreLogic data provided by DQNews.

 

San Diego votes to extend rent payments until Dec. 30

  • The City Council voted 5-4 to increase the time renters have to pay back rent that is owed. The mayor could still veto.

  • San Diego City Council agreed to extend rent repayments until Dec. 30. The eviction moratorium expires Sept. 30
  • Moratoriums in unincorporated San Diego County, San Marcos, Imperial Beach and La Mesa have all ended.

As Moratoriums End, An Eviction Crisis Looms Over San Diego County

  • The eviction moratorium for the unincorporated areas of San Diego county expired on July 1st. The City of San Diego’s moratorium expires on September 30th, with renters allowed to make repayments until December 30th. The Chula Vista City Council just extended their moratorium until the end of August. Other cities have moratoriums, but it’s inconsistent throughout the county.
  • The most pressing date for San Diego residents is now August 14th, when the state’s judicial council could reopen eviction proceedings across the county in places without an ongoing moratorium. 

 

Steve’s Take

    • Even if a city lifts an eviction moratorium, the judicial council of the State of California is not processing any summons for evictions. That means no evictions. They are meeting soon to decide whether to change that ruling. I made a 3 minute video to explain whats going on. We will keep you updated. 
    • Interest rates are at record lows. If you can save 1% or more it makes sense to refinance, assuming you’re not moving soon. The market for jumbo loans, above the conforming loan limit in San Diego County of $701,500, is gone. If you have a higher loan balance above this limit, be patient. These loans will come back and I’m sure rates will stay low. 
    • It will be interesting to see what happens with the market over the next 12 months. I’m on the sidelines as far as new investments are concerned. Building up cash reserves seems the prudent thing to do. If you are looking for a home to live in 7+ years, it makes sense to buy now. Although I wouldn’t fault you for being cautious and seeing what happens over the next 8-12 months.
 
If you are interested in selling your property in the near future, now may be the time. We are preparing complimentary sales analysis for all interested investors, which includes the 5 pieces of information sellers need to know before making a selling decision.