11 Apr San Diego County’s Job Recovery and the Housing Market
Continuing its steady recovery from the recession in 2008, San Diego County jobs and income are quickly improving. This marks a great sign for San Diego’s housing market, as a complete job recovery will strengthen home sales volume.
Home Sales Volume Slows Until 2018
|2017 projection*||2016||2015||2003: Peak Year|
|San Diego County home sales volume||42,500||43,200||42,800||60,800|
*first tuesday’s projection is based on monthly sales volume trends, as experienced so far this year.
Sales volume in San Diego County 2015 ended nearly 12% higher than 2014. This raise was due the area’s swift job recovery and lower mortgage rates in 2015. Despite this boost, sales volume did not increase a significant amount in 2016 since end users are yet to return in significant numbers. You can expect sales volume to continue to slowdown in 2017 following the forthcoming increase in mortgage rates.
Jobs will reach a complete recovery around 2018, at that time home sales volumes will take off, reaching its peak around 2020-2021.
San Diego Surpasses Other Counties in Jobs Recovery
Chart update 03/22/17
|Jan 2017||Jan 2016||annual change|
|San Diego County employment||1,425,600||1,393,300||+2.3%|
End users will need to acquire income in the form of jobs and wage increases before they can provide sufficient support for the housing recovery. San Diego leaves other California counties behind as it continues to outpace the state’s jobs recovery. This is great news for the housing industry in San Diego.
The number of employed individuals in San Diego County saw a rapid increase in the second half of 2015, unlike much of the state. Even though San Diego has far surpassed the number of jobs prior to the 2008 recession, with the working-age population increase of roughly 250,000 individuals in San Diego County since, the real jobs recovery isn’t expected until around 2018. This will bring on mass wage increases, followed by an increase in homes.