A new year is around the corner. This year the real estate market continued to stay strong, mortgage rates remained low, and according to California Association of Realtors, job and income growth have been positive.
For the city of San Diego this has been an outstanding year as well. Towards the end of June, San Diego was fortunate enough to be selected as the World’s Smartest City by National Geographic. San Diego was the only city in the United States to be nominated by National Geographic in a category of “world’s smartest cities”. This was a great boost for our city. It is also great for future investors, professionals, millennials, and corporations that are considering a move to San Diego. Having companies such as Qualcomm and Illumina making Fortune 500 list, was another validation that San Diego has a potential of drawing in some of the best talent in the country.
On the development front, San Diego continues to promote the development in downtown San Diego. There are a several new developments being built downtown, including Pacific Gate, a luxury high rise condo tower anticipated for completion in the winter of 2017. This revitalization of the urban core is great for the growth of San Diego as a commercial and innovation hub, but it also demonstrates confidence in the future of San Diego.
Along with the urban growth, there is also a movement to create more public spaces such as Piazza Famiglia which will be new pedestrian plaza in Little Italy which will open at the end of 2016. Aside from development, there was also recorded number of increased community gardens across San Diego. There is more space devoted to communities, which is also nice to see. However, that’s not it. “A New York University study examined the effect of community gardens on nearby property values. The study of 636 NYC community gardens shows a statistically significant and increasing over time, positive effect on sales prices of residential properties within a 1000 foot radius of a community garden when compared to properties outside the 1000 foot ring but still within the same neighborhood.” This is a trend that continues to grow in San Diego. Our Group hopes community gardens will have similar effect on residential properties in San Diego.
Overall, the coastal communities and luxury real estate market also remained strong. La Jolla’s 92037 zip code was one of the hottest markets in the U.S. as stated by the Coldwell Banker Luxury Market Report.
Although inventory remained tight, our Group saw an increase in residential home sales. The median sales price went up in key coastal markets from 2014 and 2015.
Here’s a glance at the stats:
La Jolla- median sales price increased by 29%
Pacific Beach- median sales price increased by 39%
Del Mar- median sales price increased by 24.8%
Solana Beach- median sales price increased by 68.2%
Coronado- median sales price increased by 34.2%
Due to events that took place in San Diego this year, our Group believes this is one of the best times to be involved in the real estate industry in coastal San Diego. The San Diego Real Estate market had a great 2015—the best year for housing since 2007 and we are looking forward to a strong 2016.