Summer is just around the corner (or perhaps already here in the PNW), and the housing markets in both Seattle and San Diego have continued along their respective paths of increasing prices.
Last year, we wrote about the rising home prices coupled with low inventory in desirable Seattle neighborhoods. This recent article in the WSJ argues this is still the case, and also mentions the ravenous bidding wars happening over key properties in key areas. Not only does it discuss the high home prices, but also the influx of technology moving north from Silicon Valley.
Just a bit further down the coast in San Diego, our office came across this SDUT article presenting the expectation of rising rents over the next couple years. San Diego specifically is supposed to increase at rates faster than anywhere else in SoCal. According the report (published by USC’s Real Estate School), San Diego is experiencing growth in both employment and population, while lacking new construction. A classic situation of rising demand and limited supply.
Seattle and San Diego are similar in the fact that new development is limited in part by physical barriers. It is difficult to build into the Cascades or Puget Sound, just how it is as difficult to build out into the Pacific. The future of clever, efficient, new development in these areas to meet the needs of growing demand could be a very powerful thing over the next few years!
Seattle Funding Group’s core market map
SFG Leaders within these two core markets:
Seattle/Bellevue 425.455.1713
Kent Rowe, krowe@sfgfunds.com
Ron Lorentsen, rlorentsen@sfgfunds.com
San Diego 858.751.0556
Chuck Salas, chuck@sfgfunds.com
