This latest survey by realtor.com shows that only 11% of homebuyers are concerned about the drought (just edging out the sinkholes!):
Homeowners were the most concerned about tornadoes, at 39%; severe cold or winter storms, at 38%; flooding, at 35%; hurricanes, at 29%; earthquakes, at 21%; wildfires, at 17%; droughts, at 11%; and sinkholes, at 8%.
According to drought.com, 87.9% of California is enduring ‘Extreme Drought’ conditions today, but San Diego County isn’t part of it:Link to Drought.com/sandiego
The last severe drought peaked in 2014, and it was only after the fact that we found out that San Diego had plenty of water. This year, the governor has urged Californians to voluntarily cut domestic water use by 15%, and more restrictions are likely to follow.
How will it affect the real estate market?
Hopefully it will cause more buyers and sellers to seek out the truth – that San Diego is in better shape than most of the state. There is a very affluent demand for homes here, and water will always be available….at some price. Buyers with bigger and better reasons to move here won’t be deterred, and besides, what’s the alternative? Move to Florida?
It might cause a few more potential sellers to add one more reason to their list of why they should move, but the fear of water drying up won’t be enough to overwhelm the reasons to stay – weather, it’s-more-comfortable-to-stay, don’t-need-to-move, don’t want to go through my stuff, kids-are-here, etc. Maybe some additional inventory hits the market in selected areas, but don’t expect a flood.
Doug had thoughts about the drought in 2015: