San Diego Water Shortage Could Drive Bank Home Prices Higher
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Published: Monday, February 09, 2009
It may be raining this week but years of unseasonably dry winters have left the region and San Diego in particular, in a water shortage, which could have long reaching effects. To combat a potential San Diego water emergency, Mayor Jerry Sanders' office announced this week it will begin holding workshops to educate homeowners and consumers about the need to conserve water in the coming months. The move came as the Metropolitan Water District of Southern California, the state's largest water distributor, recently announced plans to cut San Diego's water supply by as much as 20% later this year if winter storms fail to adequately raise water levels in reservoirs or add to the northern snow pack.
Water Shortage Limits New Construction, Creating Demand for San Diego Bank Owned Homes
One side effect of a San Diego water shortage is the limits it places on new home construction. With residents already being asked to conserve, it becomes increasingly difficult for builders to get new water service from the City or other water districts. As a result, the demand for ready built housing at bargain prices could rise dramatically in the next few months. San Diego foreclosures lead the market in affordability and if buyers wanting the most house for their investment dollars can't find new homes they will turn quickly to the San Diego bank homes market. This could signal price increases for bank homes in San Diego and the entire Southern California real estate market.
San Diego Home Prices Also Affected
The Mayor's office is quick to point out that there are no plans to ration water and they believe that conservation efforts can have an important impact on the current water shortage. Therefore the current water situation won't further drive San Diego home values down. Prices are affected, however by demand and with builders essentially out of the market for the time being, buyers hoping to cash in on San Diego foreclosure bargains should think about locking in a deal now, before prices begin to climb. Contact Richard Elias today at 1-800-474-1919 for a private showing of San Diego's best bank owned homes.
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About this Page: The Metropolitan Water District may soon begin limiting the amount of water it supplies to San Diego, limiting the construction of new homes. Richard Elias explains how this could create greater demand for San Diego bank homes and drive prices higher.
San Diego Water Shortage Could Drive Bank Home Prices Higher
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