The London GroupÂ are reputable economic advisors to the San Diego real estate community. Here are someÂ hot points from their latest reports and interviews…along with what we’re doing about it.
–Invest in assets with promise, or those that are stable. Employ a conservative approach and don’t go for the home run just yet. (we are specializing inÂ many small residential projects with a quick turnaround while keeping our eye on the multifamily market for bigger opportunities)
–Purchase in good metropolitan markets – those with diversified economies with limited potential for new supply, growing populations and good quality of life. (sounds like San Diego so we’re staying here!)
–Forclosures have not surged yet in San Diego due to more short sales occurring before property becomes bank owned. They estimate San Diego foreclosures in 2010 to be 10,000, down from peak of 20,000 in 2008. (we are starting to see and pursue more short sale opportunities versus REO)
–27% of all San Diego listings are distressed sales (this is still a large percentage but the key is building relationships with agents and banksÂ to get the best deals before the competition)
–San Diego has added 10,500 jobs so far in 2011, representing a 2% growth rate. (home valuesÂ are still bouncing around at the bottom because we are not creating enough jobs to give buyers the confidence to come off the sidelines – as a result we are focusing on quality and pricing aggressively for a quick sale)
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