San Diego Housing Market News and Analysis
Buy a House Now? It Depends...
Submitted by Rich Toscano on February 27, 2011 - 3:31pm
Last week I discussed housing valuations -- how expensive local homes are in comparison to their historical relationship with rents and incomes. To sum up the conclusions, San Diego homes in aggregate are right in the middle of the valuation range that has prevailed for the past thirty-odd years. However, due to super-low mortgage rates, monthly payments on San Diego homes are substantially below their typical historical levels.
This article will deal with whether it makes sense, financially speaking, to buy a home in a market characterized by middle-of-the-road prices alongside dirt-cheap monthly payments.
The answer, as you might imagine, is that it depends on whether you care more about future change to prices or to monthly payments. Below I'll discuss different circumstances under which buyers might care more about one or the other. But first, I actually want to describe prospective changes for each.
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