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Stronger Profit Prospects for San Diego Cheap Homes

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By : John Cutts    99 or more times read
Profit prospects for San Diego cheap homes are stronger because the employment situation and other economic factors in San Diego are getting better.

The index for leading economic indicators compiled by the University of San Diego jumped up for the 11th consecutive month in February, as the number of building permits increased and the unemployment rate dropped.

Alan Gin, the USD professor who calculates the index, said that the county economy will grow but at a slow pace. He said that the employment rating improved due to the increase in help-wanted ads for four consecutive months and the decrease in new unemployment claims.

According to the California Employment Development Department, the unemployment rate in San Diego County in February dropped to 10.6 percent, down from the January jobless rate of 11.1 percent. The rate improved because more people were hired by hospitals and private schools. The number of people who got temporary jobs also increased. It was in the retail, manufacturing and construction sectors where jobs were cut down.

If recovery is sustained in the area, people investing in San Diego cheap homes will have stronger profit prospects as a strong economy spurs people to buy homes or rent higher-cost rental homes.

The number of building permits also improved, posting a 200-percent increase over permits issued in February last year. The total number included permits to build single-family homes as well as triplex homes.

USD professor Gin said that despite the improvements of certain key economic indicators, San Diego County still faces at least two risks: lower spending levels by the state and county and the increase in residential and commercial properties entering foreclosure auctions in San Diego.

In February, the number of residential pre-foreclosure notices shot up to 2,166, an increase of 24.4 percent from 1,741 notices in January and the highest number hit since October last year. Although the number is more than 37-percent lower than pre-foreclosures in February 2009, the number still shows the difficulty of many homeowners in making their monthly loan payments.

As the foreclosure and unemployment situations are still making adverse impacts on families, consumer confidence in the county weakened in both February and January.

Nevertheless, investing in San Diego cheap homes is a profitable business decision because of the upward direction of the index of economic indicators for San Diego. This means that prospects for reselling homes at a profit will increase.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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