Blog

San Diego Named One Of The Nation’s Top Real Estate Markets In 2016

Fortune just named San Diego, CA as one of the best real estate markets in the U.S. for the next 11 months. Why does San Diego real estate rank so high? What other cities are ripe for investing in 2016? What twists could change the game for some property markets?

2016’s Top Property Markets

According to Fortune and Realtor.com, the best property markets for this year are as follows:

  1. Providence, RI
  2. Louis, MO
  3. San Diego, CA
  4. Sacramento, CA
  5. Atlanta, GA
  6. New Orleans, LA
  7. Memphis, TN
  8. Charlotte, NC
  9. Newport News, VA
  10. Boston, MA

Trulia’s Favorite Housing Markets for 2016

According to Fortune, Trulia has a different view of what makes a good market, taking the following into account:

  1. Strong year-over-year job growth
  2. Low vacancy rates
  3. Affordability
  4. Inbound versus outbound home searches
  5. Large percentage of millennials homebuyers

According to this matrix, Trulia expects the best housing markets in 2016 to be:

  1. Grand Rapids
  2. Charleston
  3. Austin
  4. Baton Rouge
  5. San Antonio
  6. Colorado Springs
  7. Columbia
  8. San Bernardino
  9. Las Vegas
  10. Tacoma

Of course, not everyone will be drawn to these markets. They won’t appeal to all buyers, or real estate investors. This may specifically true of foreign investors who, the Business Journals, continue to be drawn to major gateway cities like New York, San Francisco, and Seattle.

Market Twists & Tangents to Watch for in 2016

While Realtor.com has predicted a steady year, which could be even better than 2015, and Zillow paints a picture of a mediocre year, there are a number of potential twists that could shake things up.

While interest rates may edge higher, many don’t see them having a negative impact on housing. What is more important, however, is access to financing. Will mortgages get easier or harder to get? Then, of course, there is the international investment factor. One recent survey suggests at least 60% of foreign investors plan to ramp up U.S. holdings this year. Overseas funds have also gained a big boost with new tax breaks, and that could bring billions of dollars to U.S. commercial markets.

What’s the Right Market for You to Invest in 2016?

While this can all reveal a lot about real estate markets, the truth is that what’s ‘best’ is far more personal. What’s best for one buyer or investor may not be best for the next. A lot depends on your personal goals, resources, and strategy.

Are you looking for a fast moving market that will allow you to flip properties quickly? Or are you looking for a strong long term rental market where there will be high occupancy rates, and consistent income fueled by local jobs and a diverse cross-section of industries? For others, long term equity growth potential, and being able to get into affordable properties is the most determining factor. Know what you want before you shop.

Summary

The San Diego real estate market will definitely be a top pick for many homebuyers, second homebuyers, and real estate investors in 2016. There are other markets which may be attractive for those based in San Diego and who are now looking to diversify. However, before rushing out to shop, know what you want, what boxes a market should check, and then look for great individual opportunities.

🔒 Your information is secure and never shared. By subscribing, you agree to receive blog updates and relevant offers by email. You can unsubscribe at any time.