July 14, 2024

San Diego real estateIt’s ALWAYS a good time to buy in a Realtor’s mind.
WHY? 

Cause’ we make a COMMISSION…that’s why.
Market crashing…suckers buying? WE GET PAID
Market increasing, greedy sellers making a killing? WE GET PAID

Why Wouldn’t you always be told it’s a good time to buy?

Anyway…look at it this way…

Corrections are cyclical..about every 10 years here in San Diego, followed by about 5 years of stagnant prices. We had 10 years of boom (1995 -2005) in San Diego. We are now dropping, followed by a slow settling, and a long stagnant period.

If you want to buy, don’t plan on reselling for at least 6-8 years.

Now…If you intend to keep the house that long, I DO agree with most Realtors about NOW being a good time to buy, but not for the same reason. It’s the RATES…they are AWESOME right now. 30 yr fixed rates (which follow the ten year long-bond) are unusually low…still.

Rates are between 5.75 and 6.25% for the average 30 year fixed rate…this is about 50 basis points lower than just 2 months go…unbelievable!

So, getting this rate now, even if the market corrects another 5 or 10%, will likely still save you enough when compared to future rates to more than make up the non-realized (perceived) loss in value.

Bottom line, you buy for the long term now…keep for 7-8 years…get a FIXED rate today…and you should be fine.

Many condos and Townhomes take the biggest hit in a declining market…go for the HOUSE if you can afford it.

But, the only flaw in this scenario would be a much larger drop in home values from here. Plus, the possibility of a housing induced recession. So, who really knows? This is where you must call your own shots! But, one thing is certain, but a home to live in…not for investment.                                       San Diego real estate agent 

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