4 Reasons Why Winter is a Great Time to Buy Real Estate in San Diego

Each year the San Diego real estate market experiences what's known in the industry as seasonal adjustment. Essentially the market place sees less transactions completed or less homes sold. The reason for this drop off is multifaceted from agents not working as hard during the holidays or potential buyers and sellers being distracted with holidays, football and food.p.p1 {margin: 0.0px 0.0px 0.0px 0.0px; font: 10.0px Helvetica}p.p2 {margin: 0.0px 0.0px 0.0px 0.0px; font: 10.0px Helvetica; min-height: 12.0px}

Really, the reasons go on and on. What's a shame is that buying in the fall and winter months in San Diego often offers some of the best deals in the market and this year is even better. San Diego is facing a possible double dip in the price of real estate right when we go into our seasonal adjustment period. Let's look at four reasons why now is a great time to buy real estate in San Diego.

1. Prices are once again dipping

Prices were down 1.6% in October. When you combine San Diego's usual seasonal adjustment numbers with this unsavory marketplace you have the perfect recipe for the dreaded double dip. While it may seem counterintuitive to buy during the double dip in housing prices this second dip is projected to be small. Meaning that housing prices on the lower end of the market, sub $300,000, will continue to rebound in 2011.

2. Property is Generating Cash Flow Again

In the height of the housing bubble in San Diego there was absolutely no way that a property's cash flow associated with rent would equal more than the mortgage payment. With pricing coming down nearly 40% in the San Diego market from the 2007 peaks and rents staying relatively stable (if not slightly increasing) residential property is once again having positive cash flow.

In some areas of the county it's possible to purchase a rental unit for well under $100,000 per door. This is an absolutely great time for smaller investors to jump back into the market place.

3. Historically Low Interest Rates

Even without quantitative easing money has never been easier to get. Historically low interest rates and an increase in the money supply courtesy of the Federal Reserve means that money is literally flooding into the market place.

Stable rents coupled with fixed rates under 5% mean that cash flows associated with residential income property are virtually risk free. Getting into the landlord business is beginning to look more and more attractive.

4. Real Sellers

When San Diego's market goes into the annual seasonal drop off in the fall a very interesting phenomena occurs amongst those looking to sell their home. Offers are given quite a bit more consideration. Selling near the end of the year has tax implications that need to be met, and sellers want to start off the new year with that clean slate or may be relocating to a new city for employment in the new year.

Call it a market aberration, call it collective consciousness, but less sales fall out of escrow in the fall and winter months than in the traditional "hot" seasons of spring and summer. Bottom line is that if you're looking to invest in the winter there's a much better chance of actually closing an escrow.