July 17, 2024

San Diego Real Estate Market

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Is now the time to purchase San Diego real estate?

Yes, the most popular question real estate is always, is now the right time to buy?

One should understand that the residential real estate industry is basically a sales industry. As such, the vast majority of active real estate agents and real estate brokers are always optimistic ( many times overly so) that now, is always a good time to buy real estate. So, in reality, asking the question, is now the right time to buy real estate, it would be more appropriately, and perhaps more accurately answered if it was addressed  local economist, preferably not one affiliated with the building industry.

There is really no accurate way of answering such a question because too many factors come into play. So perhaps the best way to answer this question is to ask it of yourself. Yes, ask local real estate professionals what the current activity is and how it compares to what it was let’s say six months ago. Review a couple of financial publications such as the Wall Street Journal or barons as to their economic outlook for the country in general.

Naturally once having done this, the ultimate call on how to answer the question will be yours. You can’t take the risk out of any freely traded market, but you can minimize that risk by analyzing all the factors affecting the market.

San Diego real estate market – It’s a long term investment

Keep in mind, that when this question is answered, it’s almost always  followed by a statement to the effect that real estate is a long-term investment. I guess that long-term investment statement is the escape clause in case the rosy scenario of an improving market doesn’t turn out to be correct within a year or two.

But even the long-term investment escape clause cannot be sufficient to get the answerer absolved of the overly rosy projection that reality subsequently proved to be 180° off base. A good example of this, was the majority’s opinion in the summer of 2005 that any slow down in the real estate market in San Diego was in reality just a pause in the upward trend, and a great time for astute investors to jump in to the market and get a great by without having to contend with a multiple offer situation.

Looking back, I think one would be hard-pressed to find any residential San Diego homeowner who purchased in 2005, 2006, 2007, 2008 and probably 2009 that would show a profit if they had to sell today! So, what is long-term?

San Diego real estate market blog