San Diego rent prices vs. home prices
'San Diego average rent up slightly to $1,748 a month' www.sandiegouniontribune.com Author: Phillip Molnar Posted on 03/28/2017. Retrieved on 03/31/2017 at https://www.sandiegouniontribune.com/business/real-estate/
The bad news for renters is rent keeps going up. The good news is the increases have slowed considerably.
Average rent reached $1,748 a month in San Diego County at the start of March, increasing 8 percent in a year, said MarketPointe Realty Advisors in a report released Monday.
Despite the big yearly jump, the average rent rose just $5 a month in the last six months, or 0.29 percent.
It’s unclear how important the modest increase is. On the surface, it would appear rent finally got too high. But, the report’s author says that’s probably not the whole story.
Russ Valone, CEO of MarketPointe, has been tracking San Diego rents since 1988 and said while rent growth has clearly slowed, it’s not out of the norm to have a modest increase at the start of the year and a bigger jump by the end.
His company’s last report in September showed rents had gone up 7.7 percent in six months — the biggest six month increase since he started keeping track — so it wasn’t all that surprising the next jump was a bit less.
“Rents are not always a straight line upswing,” he said.
San Diego rents have increased, on average, 2 percent every six months since 2000.
Valone said rent increases could have slowed for a variety of reasons, including affordability and rents being high enough to push people to buy a home and take on a mortgage instead. Its data covers mostly complexes that have 25 or more units so not all rentals in the county end up in its reports.
MarketPointe looked at 131,762 units in the county, with just one major apartment complex, The Rey, opening in the last six months.
The weighted average rent for a studio in March was $1,372 a month; a one-bedroom, $1,549; two-bedroom, $1,823 a month; three-bedroom, $2,255 a month; and $3,033 a month for a four-bedroom.
Two-bedrooms are the most prevalent unit size, making up 52.5 percent of all units. It is followed by one-bedroom units at 35.5 percent and three-bedrooms making up 7.86 percent. Studios, at 3.76 percent, and four-bedrooms, at 0.40 percent, are the hardest to find.
Overall, the county’s vacancy rate is 2.2 percent. The cheapest units are quickest to go. The vacancy rate for an apartment under $1,200 a month is 2.5 percent. For a unit costing between $2,200 and $2,299 a month, the vacancy rate is 19.9 percent.
Downtown rents run about $2,149 a month, close to the most expensive submarket, coastal North County, where the average rent is $2,126 a month. The cheapest is in East County at $1,418 a month.
The San Diego central market — made up of downtown, Mission Beach, Ocean Beach, North Park — has the most new apartment units under construction at 2,045. The Highway 78 corridor (San Marcos, Vista and Escondido) has 290 units under construction, and South County has 767. East and North County coastal areas, as well as the Interstate 15 corridor (Poway, Rosemont, Ramona), don’t have anything under construction, Marketpointe said.
'San Diego home price increases fall behind nation' www.sandiegouniontribune.com Author: Phillip Molnar Posted on 03/28/2017. Retrieved on 03/31/2017 at https://www.sandiegouniontribune.com/business/real-estate/sd-fi-case-shiller-20170328-story.html
San Diego County’s home market continued to show signs of decelerated growth in January, falling behind the national average for the second month in a row, said the S&P CoreLogic Case-Shiller Indices released Tuesday.
The indices, adjusted for seasonal swings, showed San Diego County home prices rose 5.7 percent in a year. It was 5.9 percent nationwide, the strongest increase in 31 months.
Of the 20 major regions followed by the indices, San Diego ranked No.14 in January — above Los Angeles, Phoenix, Cleveland and other markets.
Last year at this time, San Diego’s home prices were increasing nearly 7 percent in a year and outpacing the national average.
While mortgage rate increases could slow price growth eventually, it hasn’t made an impact yet, wrote David Blitzer, managing chairman of the Index Committee at S&P Dow Jones Indices.
“Higher prices and mortgage rates shrink the number of households that can afford to buy at current price levels,” he wrote. “At some point, this process will force prices to level off and decline — however, we don’t appear to be there yet.”
Seattle had the biggest yearly increase at 11.3 percent, followed by Portland at 9.7 percent and Denver at 9.2 percent.
The lowest were Washington, D.C., at 3.9 percent and New York at 3.2 percent.
The coming year appears to follow a similar pattern as 2016 of low home inventory driving up prices, said Zillow chief economist Svenja Gudell. The difference this year is mortgage rates are up since Donald Trump’s election victory and could continue to go up following the Federal Reserve’s decision to raise rates.
“(Mortgage) rates are rising slowly and what inventory is available continues to fly off the shelves,” she wrote in an email. “Nobody should expect these overall market forces to shift meaningfully overnight.”
The median home price in San Diego County was $495,000 in January, CoreLogic said. The Case-Shiller index goes beyond evaluating home transaction prices to track repeat sales of identical single-family houses as they turn over through the years.
* * *
S&P CoreLogic Case-Shiller Indices for January 2017
Yearly increases by city
Seattle — 11.3
Portland — 9.7
Denver — 9.2
Dallas — 8.2
Tampa — 8.1
Boston — 7
Miam — 6.7
San Francisco — 6.3
Detroit — 6.2
Las Vegas — 6.2
Charlotte — 6
Atlanta — 5.9
Chicago — 5.8
San Diego — 5.7
Minneapolis — 5.4
Los Angeles — 5.3
Phoenix — 5.1
Cleveland — 3.9
Washington D.C — 3.9
New York — 3.2
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