San Diego Housing Market update
3 Factors that Impact the San Diego Real Housing Market
The San Diego housing market is currently hitting all time highs and outpacing the surrounding areas. If you’re looking for a home in the San Diego area, it’s important to be smart with your money because the competition is fiercer than ever. Due to a lower supply than in the past, you might end up spending more for a smaller space. If you’re thinking about purchasing a space in this coveted area, here is what you should know.
Rent vs. Buy Logic
With current prices rising in San Diego, it would take about four and a half years to achieve the breakeven point where purchasing a home makes more financial sense than renting a home. If you’re planning to be in your new pad long term, then this isn’t a problem, but if you don’t know what sort of job you might have in the future or you’re thinking about going back to school, renting could be a better option for you right now.
Buying and building equity makes sense except when you might be forced to sell before you breakeven and you really give your chance a home to appreciate.Set yourself up for success by making sure that you aren’t forced to sell. If you can’t see yourself in a home for at least five years right now (and you don’t have the capital on hand to hold onto this first home while living elsewhere) then renting may be the right choice for now.
Neighborhood Niches
If you say that you want to buy a home in San Diego, you may expect an eye roll from Agents. San Diego is a melting pot of so many different types of communities. Get familiar with what each one has to offer before you spend hundreds of thousands of dollars on a home.
Do you want a neighborhood that’s right on the beach? How about the best dining? Do you want big chain stores or small businesses? How long do you want your commute to be? You can’t just start looking for a home in San Diego, – you really need explore different sectors of the city before settling. Talk to an agent about what your priorities are and do neighborhood tours before you start looking at properties.
Mortgage Rates and First Time Buyers
As mortgage rates continue to inch upwards, first time homebuyers may have a harder time achieving home ownership goals. Especially in the San Diego housing market, where the price of the cheapest home is much more expensive that in most other parts of the country. First time buyers are going to see tons of competition. While luxury buyers are going to be able to score a deal for themselves.
Contrastingly, the luxury market is currently oversaturated due to more new construction on luxury properties than ever before. If you’re thinking about buying a more upscale space, now could be the time.
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