San Diego real estate is very scarce. Most of San Diego open space is owned by the military/Government/parks. So, San Diego real estate can never really go down much in value. If you don't buy a home in San Diego now, the rising prices will never let you purchase as good a value.
Act now! It's 2004 and you can still buy your San Diego home with no down payment, no need to prove employment, the option to pay or not on an irregular basis, below market interest rates for the first few years, monthly mortgage payments low enough that it will cheaper to buy a home than rent an apartment.
Already own a San Diego home? Why not get a home equity loan 25% more than the home is worth and go on that dream vacation and you can buy a speed boat on your return.
The San Diego media 'financial' commentators were all on board the real estate hype train;after all how could they say anything that would upset their real estate developer advertisers/sponsors?
What did the Government expect would happen with these types of enticements? The newspapers, media 'talking heads' Realtors, banks, appraisers, all fed the fire. Anyone who would even question the San Diego housing market excesses was immediately ridiculed and instantly labeled a 'bubble head' for their lack of 'true vision.'
The truly sad part of this lament is the fact that in late 2005, even after the San Diego month after month real estate sales figures were off double digits, and after most real estate developers were offering huge cash incentives, the main-stream media still did not raise any red flags. Instead it was 'just a return to normal' or “a great time to buy without the pressure of multiple offers."
So, for those who still blame this all on sub-prime loans, take off your rose-colored glasses and maybe you'll see that the real reasons were much more complex but founded on greed and the herd instinct. If we learn anything from this, it should be that basic economic principals cannot be ignored. When the siren call of a 'new paradigm' is again sounded, heed the lesson of the great 2005 San Diego real estate bubble.
A few prior related posts:
San Diego Home Sales Up … San Diego Home Median Price Drops
Government Bail-Out – Risk & Reward
Southern California Home Prices Drop 34% in August
#1 Key To Purchasing Real Estate in the San Diego Market
The San Diego California Real Estate Great Depression
Yale Professor … House Price Decline Could Be Worse than Great Depression
Savvy investors should be watching all sections of the real estate market. There are similarities between investment, commercial and residential and it behooves the smart person to watch all of them prior to jumping back into real estate investing. There will be a right time! Be smart!!
Real Estate Broker
As to Fannie & Freddy …the only sane course now is to make the de facto nationalization official. In which case there is no reason to have two entities. Freddie was created in the first place to provide some semblance of competition for Fannie.
San Diego Dentist
Move Fannie back into HUD. Fannie Mae was separated from HUD in 1968. It’s time to reverse this. Moving Fannie into HUD extends the full faith and credit guarantee umbrella.
NorCal Lawyer
It seems clear that housing values are headed downward at least another 15 to 25% and I am a bit stunned that anyone besides home builders, Realtors & homeowners trying to sell would assert “now is the time to buy.
San Diego Eye Specialist
Prices will drop to the level of qualified buyers. I think that values soared to unsustainable levels because Alt A and subprime programs increased the pool of qualified buyers well beyond the general population increase.
Clinical Research Assistant
I expect it to be challenging for the next year with a recovery starting by next summer. I’m not sure it will be a big bump but there will be more signs of life. We’ll see-the banks still need to sort out all their problems first. Take care.
Dallas Bail Provider
Historically it has been proven that one generally stays about five to seven years in a home. Hence, to all doomsday sayers, even if you buy now you will do well when it comes to selling.
Acne Specialist