San Diego ranks 10th in hottest real estate market forecast for 2011
In a recent survey performed by the Urban Land Institute (ULI), San Diego was ranked tenth in a list of real estate markets to watch. "The emerging trends" report is in its 32nd year and is compiled from 275 personal interviews with industry experts. The Washington based organization believes San Diego as a coastal market will perform better than many areas across the U.S.
The assembled experts at the ULI warned that no particular sector or market was performing well. "We've been living large in a time of more" commented Jonathan Miller, the author of the report which evaluated 51 U.S Markets and a number in Canada and Latin America. "In the end it all resulted in a lot of losses and some major flops. As predicted last year, 2010 would be the bottom for the commercial real estate market. In fact, we think that’s happened. Next year is, after a period of more-more-more, we are entering a period of less…the era of less."
On a scale of 1 to 9 with 1 representing "abysmal" and 9 representing "excellent", San Diego rated 5.63. This is a slight increase from the 5.04 it scored in the previous year’s report.
The highest placed market was Washington, but it's score of 7.01 is still some way short of "excellent".
ULI ranks the top ten markets for 2011 as:
- Washington, 7.01
- New York, 6.56
- San Francisco, 6.34
- Austin, 6.29
- Boston, 6.20
- Seattle, 6.09
- San Jose, 6.08
- Houston, 6.02
- Los Angeles, 5.84
- SAN DIEGO, 5.63
(The scores are calculated on the forecast for commercial and multifamily real estate investment)
The San Diego assessment is as follows. Traditionally, San Diego's local economy creates startup jobs, however it does not retain headquarters. For global and domestic business this means looking toward Los Angeles, which has a major port and is home to a major airport hub, LAX. Unfortunately, San Diego does not boast these same features, which makes traveling to it troublesome.
Although downtown condos are badly oversupplies. There is demand in housing in better neighborhoods and cash buyers floating out there. Today public company homebuilders buy fairly cheap residential land in preparation for an eventual upturn in the economy. After all, what is not to like about the sunny San Diego's most envy-inducing climate?