Recession Does Not Equal Housing Crisis

Some people say that we're in a recession, and others say that we're in a housing crisis. The truth is, it's a little bit of both. San Diego home prices have declined 6 percent from their peak, but they are still 34 percent higher than they were before the recession began. So what does this mean for you if you're selling your home or buying one? Keep reading to find out!

It seems like every day, there is another article declaring that we are in the midst of a housing crisis. Headlines shout that prices are too high, inventory is too low, and first-time home buyers are being shut out of the market. While it's true that the San Diego housing market has its challenges, it's important to keep things in perspective. Yes, prices have risen sharply over the past few years and inventory is tight. But there are still plenty of homes on the market, and interest rates remain at historically low levels. So while it may be harder to buy a home than it was a few years ago, it's still very possible to find a place that meets your needs and fits your budget.

What is a Housing Crisis?

In order to understand whether or not we are in the midst of a housing crisis, it's important to first understand what a crisis looks like. A housing crisis is typically characterized by sharp increases in home prices, widespread foreclosures, and declining homeownership rates. We certainly haven't seen anything close to that here in San Diego. Prices have risen steadily for the past few years, but they're still well below the highs of the last housing boom. And while foreclosure rates have increased slightly from their pre-recession lows, they're still nowhere near the level of distress we saw during the financial crisis. As for homeownership rates, they have declined modestly since peaking in 2004, but that's primarily due to changing demographics (more millennials living with their parents or renting instead of buying) rather than anything specific to the housing market.

So if we're not in a housing crisis, what's all this talk about prices being too high and inventory being too low? Well, it's important to remember that just because we're not in an all-out crisis doesn't mean there isn't room for improvement. In many ways, today's housing market is a victim of its own success. Prices have recovered so much from their lows during the recession that many people who might otherwise have been able to buy a home are now priced out of the market. And while there are plenty of homes on the market for sale, they tend to be concentrated at the high end of the price range—leaving buyers who are looking for something more affordable with fewer options. That said, even in today's tight market there are still opportunities for buyers who are willing to be patient and flexible in their search.

Watch to Learn More about Recession vs. Housing Crisis

The bottom line is this: yes, prices have gone up and inventory is tight—but we're not in the midst of a full-blown housing crisis. So if you're thinking about buying a home in San Diego, don't let the sensational headlines scare you off. With patience and perseverance (and maybe a little help from your friendly neighborhood real estate agent), you can find a great place to call home.

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Book a one-on-one real estate consultation with Melina Rissone. Learn more.

Having sold properties for more than 17 years and earning various prestigious awards throughout the course of her career, Melina Rissone has more than earned her reputation as one of San Diego's most skilled and trustworthy real estate brokers. Her following of loyal clients is a testament to the level of dedication she puts forth in every transaction she oversees.

Hardworking, attentive to detail, and a strong negotiator when it comes to the financial aspect of buying or selling a home, Melina gives clients a competitive edge when it comes to accomplishing their goals in the best and most lucrative manner.

Passionate about real estate and its possibilities, Melina supports all things "real estate" and, in addition, specializes and is certified in the following:
* Coldwell Banker Global Luxury and Institute of Luxury Home Marketing certified.

*Cartus Network Inventory Specialist and Cartus Network Marketing Specialist since 2015. This means more accurate pricing, shorter marketing times, and higher adjusted sale rates when working with us.

*RCS-D Designation, a Real Estate Collaboration Specialist for Divorce.

*SRES Certification through NAR is a Seniors Real Estate Specialist certification.

Whether clients aim to purchase the home of their dreams, sell a property, or make an investment for their future, Melina's market expertise, proven foresight, and meticulous planning strategy ensure a successful endeavor each and every time. Melina is bilingual in English and German.
Melina has been recognized as the Top 4% of all real estate brokers in San Diego County in 2021 and the Top 3% of Coldwell Banker International. She has been awarded the Coldwell Banker Presidents Elite Award.