Why are Home Prices Rising in Encinitas?

Neighborhoods and News, Uncategorized
June 23, 2021

Home prices in the San Diego housing market have risen 14% since last year. This includes areas like Encinitas and Carlsbad. But why have the home prices increased so astronomically over the past year? There are a few factors that have contributed to the rise, but the most notable is the change in the market.

The Pandemic and the Shortage

While the pandemic did contribute to the raised home prices in the 92024 and surrounding areas, it is not the only factor. The biggest contributing factor to the rise in home prices is the changing market. This past year, the housing market saw an unprecedented shift into a seller’s market. There is a shortage of homes on the market and the number of homes listed for sale is historically low.

While there may be a low number of homes listed, there is no shortage of hopeful buyers. The supply is tight, but the demand is still there!

A Changing Demographic

Mortgage rates are also at a historic all-time low. This contributed to the changing demographic and increased demand. Previously, millennials were the demographic that was most likely to rent homes. Now, more millennials than ever are looking to buy their first home.

What are the Positives of the Changed Market?

While home prices are continuing to rise, there are some benefits to this changing market. Home prices rising could potentially mean building equity! While home prices rise, if you are a homeowner within the area you could potentially build equity without much effort.