As a realtor in San Diego here are some of my observations based on experience:
1 – Yes the condo market at least in many areas I have worked in is depreciating more then single family homes.
2 – I have seen depreciation across the board for low and mid level priced condos across the county. For north county I have had listings in complexes in Carlsbad, Oceanside, Encinitas and Solana Beach. I have seen depreciation in all of those spots. Smart money says this will continue.
3 – Don’t sweat renting for a awhile longer. Even if it is up to a few years. Really it is not that bad. Even if you can wait for a year that would be better then buying now.
4 – Think of it like this, if you buy NOW, then the probability of your condo depreciating 7% verses appreciating 7% is much better then 50/50.
5 – A 7% depreciation on a 300k condo is 21K!!
6 – The VA loan program will still be there in a year or even 3 loans. It is a great program and if you are qualified then DEFINITELY use it.
7 – You could see a double whammy. Prices may depreciate AND you may see a DROP in interest rates. Suppose we come into a recession next year (which is NOT a wild idea). It “could” be possible that prices depreciate AND rates rise a bit more but then drop. How happy would you be if you waited?
Again these are only guesses but when you add them up it may REALLY strengthen your buying power. Conversely NOBODY, not even NAR or other rose tinted glasses pundits are predicting rampant APPRECIATION. So virtually everyone agrees that the market will NOT appreciate and we are all arguing about how much it will depreciate.
So at least to me waiting is the smart move….
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More thoughts… Don’t be afraid to talk to several Realtors. Also don’t be afraid to have a realtor send you listings for a few months. I have some people who I have been sending listings to for almost 2 years now! That way they can track the market in thier favorite areas. You can do the same.
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Finally SDLaw06, I had posted a few tips for buyers in a previous post. Rather then repeat them if you like shoot me an email and I will send them to you, [email protected].
Be patient and you guys will do well… I think everyone on this site will tell you the same thing.
