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Economy

Fast-Rising Housing Prices Changing South County Real Estate Market

A "for sale" sign is pictured in front of a house in Chula Vista in this file photo from July 21, 2020.
Alexander Nguyen
A "for sale" sign is pictured in front of a house in Chula Vista in this file photo from July 21, 2020.

San Diego home prices are rising at the second-fastest pace in the nation, right behind Phoenix.

As a result, Ditas Yamane, realtor and president of the Pacific Southwest Association of Realtors in Chula Vista, said the South Bay is seeing a change in the demographics of people moving in.

Fast-Rising Housing Prices Changing South County Real Estate Market
Listen to this story by Alexandra Rangel.

A lot of young professionals and entrepreneurs are moving south, she said. The region continues to be a desirable location for families, due to affordability.

“Family members are moving in together to be able to afford a bigger home and at the same time maintain the ability to be able to pay the mortgage,” Yamane said.

VID: Fast-Rising Housing Prices Changing South County Real Estate Market

Home prices in the San Diego metropolitan area are up 17% in a year as of February, according to a new report from the S&P CoreLogic Case-Shiller home price index.

It’s the fastest increase San Diego homes have seen in nearly 16 years.

The high price tag on homes is making it difficult for buyers to outbid their competition, Yamane said.

“For first-time homebuyers, the competition is very steep, because they don’t have that extra cash to put in because right now the price is this much, but competition is steep, so they go over,” she said.

The competition is due to a housing shortage, the average home in San Diego is sold within six days of being on the market, Yamane said.

She said patience is a virtue, especially when it comes to bidding on houses.

Yamane had one client who made a total of 30 bids in a time span of four months before one of her offers was accepted.