San Diego really started to see a slide in real estate values in mid 2005. The slide has continued to this day but if you watch inventory and statistics closely a case can be made that we may be at or near the bottom.
The slide while painful for many does have a silver lining. Affordability in San Diego has improved for the first time in at least a decade and a half. What this means is that many of our citizens can now really afford to consider buying their own home.
You might say that many people did this and got into trouble during the run up in values of the late 1990’s and early 2000’s. I agree with you. But there is a difference this time around, prices and interest rates coupled with reasonable and honest loan programs and actual qualifying for loans make this time around a much safer bet for everyone.
At Coldwell Banker we have been experiencing an ever increasing population of first time home buyers. Supported by Moms and Dads, these buyers are taking the first step to owning their own home. I can tell you they are excited and I don’t blame them.
Traditionally, owning your own home is the most responsible and positive financial step you can take. I remember my C.P.A. advising me to buy my own home before I considered doing any other long term financial planning. He advised that it is the best forced savings account, is supported by government tax incentives, and over time would probably perform as well or better than any other investment I could make. Except for a lucky original investment in a San Diego company named Qualcomm he was right.
For those of you who have owned your home for more than four or five years considering a move up might be wise. The inventory of move up homes in San Diego is offering some of the best values I have seen in years. I just took advantage of this opportunity myself.
With all the national and international headlines predicting possible further declines in value why would I suggest you consider taking action now? I believe that all real estate markets are local in nature. Since San Diego entered the real estate recession and adjustment in mid 2005 it stands to reason that we will probably see recovery sooner than markets like New York City that has just begun feeling the adjustment.
A good indicator is our inventory of homes for sale. A healthy market has six to nine months of inventory available at any one time. Our current inventory is about six and one-half months and that is on the low end of the scale. Because our inventory has continued to decline recently it indicates to me that we may be at or near the bottom. If you add to that the possibility interest rates below 5% then I’d make sure I did everything now to prepare for the opportunity. At a minimum get yourself pre-approved for a mortgage; it’s the first best step.
If your reason to buy a home is long term, shelter for your family and a place to enjoy your life then don’t wait too long. Buying my first home opened doors of opportunity I would never have been able to take advantage of. Don’t miss your opportunity.
Thursday, December 11, 2008
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