During my recent open houses I have been seeing a nice trend – move-up buyers. This segment of the market has been absent for some time. The market has been dominated by investors and first-time buyers all scrambling for lower priced homes. The move-up buyer brings several good things to the market.
First, they bring much needed inventory in starter homes. Everyone needs a place to start and having an inventory of starter homes gives the market a place for first-time buyers.
Second, they bring new life to neighborhoods. As they move into neighborhoods of larger homes and better schools they bring new energy and community involvement. The schools get new students, the parks get new users and the neighborhoods get fresh looks.
Third, they bring a necessary element to the market. Real estate, like many things, has a definite cycle. You start small, move to something bigger as the kids get older and then move small again when your nest empties. For several years that middle piece has been missing and the market has stalled because of it.
The return of the move-up buyer is indeed good news for the San Diego real estate market.