Home buying in San Diego
What do you think about home buying in San Diego within the next few months? I am planning to buy a home but fearful that the prices might be too high right now and they may face correction soon after I buy. What do you suggest?
I just closed on a place in San Diego last week.
I would personally rent. Mid tier homes in the $500k to $700k range may already be in correction. We wont know for sure till this summer. Interest rates have gone back down so that could mean prices and sales will pick up again. But in general prices went down more thay usual this fall. We bought a $516k condo back in December 2017 in a good neighborhood and the price has remained flat if not down 1 or 2 percent since then. I would not have bought then either, given the new tax law and the fed's interest rate increase schedule , had we not been gifted a 20% downpayment to buy that specific condo... so for me a 10% correction or so will not be a huge loss because we never really had that money outside of an equity gift. But for a normal person losing 10% a year after purchase hurts your short term flexability. If you have downpayment cash you are probably better off shoving in a CD and keep saving and watching the market. Of course if you aren't worried about your home losing value over the next few years then maybe consider buying if all you are looking for is stability.
Market analysts predict market will stagnate but not drop, at least not significantly Dropping mortgage rates Increased lending regulations from ‘09 Strong economy Low housing supply
What price range and size of home are you looking for?
Looking at town homes mostly, lower than 600k