New data shows that San Diego real estate is getting more pricey.
The latest S&P CoreLogic Case-Shiller Index shows home prices across the county are up by 11.6%, the highest in more than six years and the third fastest increase in the nation. Only Phoenix and Seattle saw bigger gains.
“The charts are just incredible. Not just the median price is going up, but the price per square foot is going up," said University of San Diego professor Norm Miller.
Miller holds the Hahn chair of real estate finance at USD. He told KPBS that the current market is great for both buyers and sellers.
“That can only be explained by a lack of supply and very low interest rates,” he said.
But Miller also said that's only good news for those who can get the cheap financing and owners who have tons of equity in their homes.
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For frontline workers and others struggling during this pandemic, Miller said the first quarter of next year is likely to be very difficult. He said a lot of foreclosures are coming with mortgage and rent relief running out, and help from the government will come too late for some.
“I think we’re going to have the bottom say 20% of the housing tier on price see a fair amount of distress, probably triple what we have right now in terms of foreclosure sales,” Miller said.
Investors will then come in, and Miller said much as they did in the financial crisis of 2007 through 2010, buy up those properties and convert them into rentals.
“There will be some people, who won’t survive this without losing their homes,” Miller said.
