SAN DIEGO (NEWS 8) - San Diego's red hot real estate market has some News 8 viewers wondering if house-flippers are driving up prices.
As home prices soar to an all-time high, some potential home-buyers are having a hard time getting in. In some cases, potential home-buyers are able to find homes they can afford, but they are being outbid by cash buyers or so-called home flippers.
Once a house is remodeled or flipped, the potential buyer(s) are no longer able to afford it. According to senior economist at Zillow, Aaron Terrazas, home flips are relatively low in San Diego compared to the rest of the state. "According to our data, about one percent of home sales in San Diego were flips. That means they sold twice in 15 to 90 days after the initial sale. Places like La Mesa and Spring Valley had the highest share of flippers - well below Los Angeles County and inland areas."
Flippers typically come into communities where housing stock needs improvement. Flippers will buy houses all in cash, which average families cannot compete with sometimes.
A local broker said one way to be more competitive in getting a dream home is to be the first to know what is coming on the market. "Call your local real estate professional in the market in which you are looking to buy before anybody," said Robert Weichelt.
According to Zillow, the typical time a house stays on the market in San Diego is 49 days compared to 60 days a year ago. That means in this market, sellers also want security and a speedy transaction.
Weichelt said he does not foresee San Diego home prices dropping any time soon, but while it is a sellers market right now, with interest rates rising, home sales are expected to slow down.
The average price for a home in San Diego remains under $600,000. In Northern California, in San Jose, the median price for a home is $1.3 million.