Global markets uncertain San Diego housing more stable

With all the uncertainty in the financial markets, how about investing in San Diego real estate? Either a bigger home or an investment property.

 

In the last five years, from 2019 to now, the median home price in San Diego has increased from $575,000 in July 2019 to $895,000 in July 2024. That is $320,000 in equity in five years or a 9.25% appreciation rate.

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If this holds and San Diego home prices continue to appreciate at 9.25%, what is purchased for $895,00 could be worth $1,393,000 in five years.

If it goes up only 5% versus 9.25% yearly, it could be worth $1,142,266 in 5 years.

And you need somewhere to live and a hedge against inflation.

There is something called positive leverage, which means that if the appreciation 9.25% than the cost of money 6.125%, it is positive leverage, and your return on investment is higher than that appreciation rate. 

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If you’d like to discuss buying a home, investing in an investment property, or 1031-exchanging into a more profitable property, or selling a home, call or text me for a free consultation*.

George Lorimer, MBA

619-846-1244

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ProWest Properties, DRE# 01146839, For any investment advice, seek counsel from an attorney, CPA, or investment advisor, *Conditions apply for all programs.