IT’S UNDENIABLE that West Coast real estate is heating up, and some markets are bound to start boiling over sooner or later. The question for most California investors is not where, but when and how they can maximize their real estate profits in the meantime and cash out while the getting out is still good. As is so often the case when any real estate market heats up, San Diego is receiving a great deal of scrutiny these days from experts and economists doing their best to identify the tipping point as far in advance as possible. The result, unfortunately for investors, is a stew of conflicting opinions that could actually expedite a bust and exacerbate a problem. Fortunately, the Brian Ellis Investing Letter believes that any serious market tremors in San Diego are likely at least 12 months away. First, let’s take a look at the cold, hard numbers. San Diego real estate is certainly looking good for those who already own property in the area. Sales volumes fell in December on both a monthly and annual basis, but stronger sales earlier in the year kept the long-term outlook strong. Even better, if you’re thinking of putting a property on the market, you’re probably going to get more than you paid for it because home values in the area are rising steadily on a monthly basis and up annually by double digits. While that type of growth is a solid benefit, it can, according to some experts and a number of “spin doctors,” be a har- binger of a bubble to come. Not so, said San Diego Association of Realtors board president Chris Anderson. “We are not seeing any monster growth in home prices, which will be a good thing to maintain economic stabili- ty in the region,” he explained. Median home prices hovered just under $540,000 in the San Diego area in November 2015, and general consensus indicates that a home valued at median
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