The San Diego Housing Bubble Is Bursting!
It is undeniable that the housing market here in San Diego (and all over the country) has been absolutely nuts. The past couple of years have brought pricing increases that most of us have never seen; which brings us to what many are asking... What's next?
So, is this a bubble, and is it going to "burst?" Of course I don't know for sure, but here are four factors that say it won't:
- The Economy here in San Diego is just too strong. Despite California's unemployment rate of about 8%, San Diego is sitting at about 6.9%, which is a bit below that.
- Housing prices are actually stabling. We've seen major pricing hikes since 2019, but the experts are projecting pricing to increase by just 1.5% moving into next year. I'm actually noticing this myself, and it looks as if price stabilization is a real possibility.
- The housing prices aren't inflated. A housing bubble happens when prices are inflated beyond what the economy can handle. The bubble then bursts to correct the inflated prices.
- Lenders aren't approving subprime loans. Unlike the home buying frenzy leading up to the 2008 crash, banks are now much more careful in which loans to approve. We won't be seeing the type of loan defaults due to buyers that couldn't actually afford their homes.
Whatever your opinion is, there are valid points on both sides- but, as always, the market is going to do what it's going to do!