by Mark Di Tommaso.
Owner/Broker SoCal Erealty
Our San Diego property management clients aren’t just ongoing owners. At the appropriate times they can be buyers or sellers or even both moving capital from one property to a larger or otherwise more advantageous rental investment.
I’m often asked if the coming months are a “good season” to invest in or liquidate San Diego rental property. Let me start by saying this…it depends on the year.
Two years ago, real estate in San Diego came almost to a halt during the holidays. Last year, there wasn’t even a sign of a slowdown. What will this year’s holiday season bring to San Diego’s recent “bumpy ride”?
In my almost 8 years of being a real estate broker in America’s Finest City, one thing has been very predictable. In charting my business, I’ve found that most of the year, my business is about 50% sellers and 50% buyers. But, during the months of October through December, my business has consisted of 95% buyers. If I didn’t know any better, I would say there is something in the water that sets people into buying mode come late September.
Of course, there is a method to the madness. If one can wait until the holidays, the logic is that there are fewer buyers looking for homes, and sellers are more likely to negotiate on price or be softer on their terms. This has actually happened 6 of the 8 years during which I have been in the business. It’s only the last couple of years that have thrown off the curve.
In one respect this holiday season is just like the rest…95% buyers. However it must also be said that the market is hopping!
Traditionally, prices and activity tend to slip a little during the holidays. This year sales are up, the median price is up, and days on market is hovering around 44 days.
The holidays are shaping up to be a good time to sell and ironically, a pretty good time to buy. Even though prices are going up, rates are still near an all-time low (how much longer will the Federal Reserve let that go on?). In some cases, mortgages are still lower than rental income, and we still get all the tax benefits that come from owning rental property!
Whether you need to liquidate or acquire rental property, a good sales broker should be able to maximize the return on your investment.
